Deal: Bankruptcy not an option, will ‘live up to our obligations’

Republican gubernatorial hopeful Nathan Deal said Wednesday that “I’m not about to file bankruptcy” despite a looming $2.3 million business loan coming due in February.

Deal, speaking to reporters at his Buckhead campaign headquarters, said “I’m going to make sure our obligations are met.”

The Atlanta Journal-Constitution reported Wednesday that Deal and his wife invested about $2 million in a retail venture by their daughter and son-in-law, a business that ultimately failed in the troubled economy. Deal lost his entire stake when the business failed, after he guaranteed a series of bank loans to the business as its debt doubled and then quadrupled.

An analysis of Deal’s assets by the AJC found that he might not be able to repay the loan. His home in Gainesville is for sale. Other property he owns in the area was listed as collateral for the loans.

But Deal said Wednesday he’ll meet his commitments. Asked how he’ll come up with the money due in February, Deal said, “we will cross those bridges when we come to them.”

“We have the property that is the collateral for the loan. It is up for sale and on the market. My house has never been collateral for this loan at all,” Deal said.

Asked whether he intends to repay all that is owed, Deal again said, “our intention is to live up to our obligations.”

Deal said he does not regret helping his daughter.

“These are the consequences of down-turned economies,” he said. “‘I’ve made great investments in the past and I’ve made a bad investment. But I stick by my obligations, but more importantly I stick by my family.”

He and his wife, he said, decided that rather than leaving his children “a big estate,” they would “give it to them when they need it.”

The failed business venture and his own financial situation should not be an issue in his race against Democrat Roy Barnes, he said.

“This was an investment,” he said. “It was an investment on behalf of a child. Had different circumstances existed it would have been a very successful investment. It was beyond anybody’s control. Anytime you invest in a child I think it’s always a good investment.”

238 comments Add your comment

SpaceyG

September 15th, 2010
12:50 pm

Yeah, won’t file for bankruptcy until he loses the election in November now. Jeez… where do we find these clowns?

[...] gubernatorial hopeful Nathan Deal said Wednesday that “I’m not about to file bankruptcy” despite a looming $2.3 million business loan coming [...]

nowayouttahere

September 15th, 2010
12:56 pm

professional skeptic

September 15th, 2010
12:57 pm

Nathan Deal: “Alls I need is somma my deep-pocketed friends to swoop down and buy my house and property for more than market value so the bank will forgive my debts and then I can get on about my business of conning the suckers of Georgia into voting for me, despite my abysmal failure as a financial decision maker and the fact that I quit my job as a U.S. Representative so they’d get off my case and stop investigating my long history of unethical business dealings.”

SpaceyG

September 15th, 2010
12:58 pm

OMG. Tell me he’s not trying to shift the blame/focus to his kid?! (Honestly, in boom times if I’d have been a bank I’d have backed a sporting goods store on the way to the mountains too. But I am not. A bank.) But back to the matter at hand… people elected this scumbag to represent them? Unbelievable.

Palin 2012

September 15th, 2010
12:59 pm

Elect him and we will live up to his obligations and have to repay this debt. He can’t run his own finances and wants to run the state?

NoDealGeorgia

September 15th, 2010
1:00 pm

Thats right. We want a governor who leads this state into financial ruin! How long will it take to for him to make some bad investments and bankrupt the entire stte?

nowayouttahere

September 15th, 2010
1:02 pm

I will not file BR until one of the following happen,.
1. Fell to win in Nov – then by all means it is the American
2. I win the election – do the wheeling and dealing behind the scenes to get another money scheme going and I repay that loan at the cost of getting in bed with some other developer. In 8 years when I am out of office I will be investigated and have to spend 3 months in CLUB FED….But no BR.
3. Oh by the way, I have a few investments I would like to make with the STATE of Georgia Funds. After the first or even second CASH infusion time to leave the inheritance cause you see the kids have no business IN business

Joyce M.

September 15th, 2010
1:03 pm

Enter your comments here

Randy

September 15th, 2010
1:04 pm

Deal need to give up and step down like he did for congress. Deal is a corrupted politician. I hope the Tea Party blast him. Deal stop blaming your kids.

Joyce M.

September 15th, 2010
1:05 pm

Nathan Deal sounds like a good father to me. He and his wife tried to help their kid. It’s no different than what my Dad would do. At least he doesn’t make his money by suing people and shaking down companies for money.

I can see Russia from my house

September 15th, 2010
1:07 pm

Nathan should just go ahead and move into the Governor’s mansion now. I’m sure Sonny and Mary wouldn’t mind. You betcha!

nowayouttahere

September 15th, 2010
1:10 pm

Great one liners Of ALL TIME.

Great One Liners
1. Boy do I have DEAL for you
2. We lost money again DEAL or KNOW Deal
3. Lets make a DEAL
4. Deal of misfortune
5. Will the real wheeler DEALER please stand up?
6. Well the DEAL is, build it and they MIGHT come

OH WOW

September 15th, 2010
1:21 pm

PROSPECTS GET READY IN ABOUT TWO MONTHS GEORGIA WILL BE FOR SALE.SO LET’S MAKE A DEAL.

Bill

September 15th, 2010
1:25 pm

Great….can’t take care of his own money or make sound business decisions, but wants to run our state. Sounds like he wants to be a career politician and live off the backs of taxpayers.

JF McNamara

September 15th, 2010
1:26 pm

I feel bad about this for him, but businesses fail. On the other hand, Georgia is about to elect a person that is on the brink of bankruptcy as governor. I’m not sure that is fiscally wise for us. If he can’t manage his own finances, we’d better have a heck of a lot of oversight and debate over his fiscal agenda.

He’s probably going to win, but this and the ethics investigation are awfully bad omens. I’m not sure I’d hire him to be the CEO of anything at this point and he’s going to be CEO of Georgia.

Catherine S.

September 15th, 2010
1:27 pm

I value and understand what Mr. Deal and saying and RESPECT his decision. He is still my favorite! I am glad that he values his family and believed in them. Says a lot about a man!

Bewildered by idiots

September 15th, 2010
1:44 pm

I saw on the news last night that in a most recent poll, Deal was ahead by 11 points. When the poller was asked what Deal’s supporters said about Deal’s tax returns and ethics probe. The response was that these were not issues for Deal’s supporters.

Huh?

Aquagirl

September 15th, 2010
1:44 pm

Going into $2 million debt when your daughter needs a kidney = family values.

Going into $2 million debt over your GROWN child’s sporting goods store = idiot.

No wonder he won’t release those tax returns. What other kind of crap is he hiding? And what kind of dummy would vote for this guy? He’s as crooked as a stick in water.

Bewildered by idiots

September 15th, 2010
1:46 pm

Catherine S and Joyce M, I am bewildered by you.

Bobby

September 15th, 2010
1:47 pm

I’m sorry for Deal’s plight but I’m still stuck; I don’t like him or Barnes (and the Libertarian is a joke) so what I may end up doing in November is simply not voting for either as Governor and vote in the rest of the elections.

If Deal does win, maybe he will favor the consumer over big business? Nah. He’ll still let big business walk all over the working Georgian.

Mad Dog

September 15th, 2010
1:50 pm

As a father, this is understandable. But it is one thing to invest your cash in your kids and quite another to borrow fare more of what you can afford to repay without providing adequate security for the loan. What stinks about this is that banks were lending a congressman WITHOUT REGARD TO HIS ABILITY TO REPAY and WITHOUT REQUIRING ADEQUATE SECURITY FOR THE LOAN. You have to ask whether federally insured banks were taking unnecessary risks just to prop up a well-connected, but bankrupt, politician. Some of the people on this blog may accept Nathan’s blithe answer of “just helping the children.” It was hard to imagine how Deal’s campaign could get more tainted but this article raises even more troubling questions.

Mishap

September 15th, 2010
1:54 pm

“This was an investment”

No, it was a gamble on borrowed money. The bank made an investment, Deal made a bet using his assets as collateral. Putting your life savings into gold is an investment…this is was a bad decision.

For a guy making 150k/yr I don’t see how he could ever possibly cover $4M in liabilities unless he has some big collateral he plans on handing over. Not too sure how you can effectively campaign w/ this looming over your head.

Brent Hoffman

September 15th, 2010
1:54 pm

I now know that Nathan Deal is more like me than Mr. Barnes (the multimillionaire).
Nathan put almost everything he owns at risk for his Daughter and Son-in-Law. Isn’t that the DAD we all wish we had. Doesn’t that reflect the kind of selflessness that each one of us wish we REALLY had? Bad investment…yes. Honorable…Loyal….Willing to take responsibility = the kind of man I want as a Governor.

Rational Citizen

September 15th, 2010
1:57 pm

This man can’t even manage his own finances, and people are going to trust him to run the State?!!!!!

Drew

September 15th, 2010
2:00 pm

That’s tough stuff, but how can we expect a guy to run our state’s budget if he can’t run his own finances?

pebblebeach

September 15th, 2010
2:01 pm

Deal hoping to hit Powerball or Mega Millions Lotto….I believe that was him buying the ticket…I could be wrong…I’m just saying…

dixie darling

September 15th, 2010
2:03 pm

Talk about being up the creek without a paddle – that describes the voters in Georgia. Of the millions of people living in our grand state, you tell me there are only 3 candidates to vote on in November? Surely someone better than these 3 will rise to the surface and put on a “write-in” campaign. No, it has never been successfully done before – but what better way out of this predicament? So who would you think should come forth? Or should we all move to Tennessee where there are two decent and good candidates for governor? Or maybe move to Alabama or Florida or one of the Carolinas? How could the politicians and movers and shakers in Georgia allow such a situation to occur? Should we blame it all on the voters – or the ones who did not vote at all?

NoDeal

September 15th, 2010
2:05 pm

This was not an investment, it was a gamble. Don’t blame the ecomomy this was simply poor business judgement.

Aquagirl

September 15th, 2010
2:05 pm

I don’t wish for a dad to get me big fat loans via political connections, but then I’m not a spoiled bratty republican thug’s kid. My dad would help me if I was in REAL trouble. Wanting to launch a high-end sporting goods store doesn’t qualify as “trouble” to anyone in my family.

“Not too sure how you can effectively campaign w/ this looming over your head.”

Why, Mishap, you just count on dimwits like Brent and Catherine. If the GBI found a mass grave in Deal’s backyard, they’d refudiate it away.

B

September 15th, 2010
2:06 pm

Aquagirl and Bewildered by Idiots:

Why does the tax return issue keep getting brought up? I could have sworn Deal released his tax returns shortly after Barnes made it an issue. Why are you still talking about it?

Billy

September 15th, 2010
2:06 pm

So is he going to gamble with the State’s money to and do bad investments? Anybody votes for him, doesn’t deserve any assistance when our economy goes worse!! You don’t get somebody that is like you if YOU don’t know how to handle your finances, you get someone that KNOWS what to do with the finances and bring back around.

bart

September 15th, 2010
2:08 pm

Frankly, as a parent myself, Brent Hoffman, I do not consider it good parenting to risk everything you own for your kids, especially if it’s a questionable investment. A good parent would have counseled his kids about the risks involved. As it was, he enabled them to make a huge mistake. This just shows me he has very poor judgement and a lot of stupidity. This along with the ethics investigation and his other questionable business practices tell me he is not qualified to be governor.

The Deal is ON

September 15th, 2010
2:11 pm

I suppose it would be better if we have a crooked Lawyer for Governor who was already elected out of office once. At least this guy hasn’t made all his money of the sweat and backs of other people. You all would rather have a person elected who has made a career off of lieing for his paycheck rather than a man who at least can own up to his debts and take responsbility for his financial obligations. If he had made millions off of this investment you all would have labeled him that “RICH GREDY REPUBLICAN” how can he relate to the plight of the poor consumer when he has this mega million dollar investment making him all this money. But no, since it was a failed venture you all can sit there and criticize his decision to take a fincial risk and start a business. Its more than i can say for you lazy A** liberals waiting for a government handout!! Lawyer, or Businessman/Consumer, the decision seems pretty easy for me!

Don't Blame Me - I voted for Handel

September 15th, 2010
2:13 pm

Now we know why Deal was using the power of his congressional office to keep his sweet heart deal with the state going.

Aquagirl

September 15th, 2010
2:13 pm

@ B— 2 out of maybe 15 pages is not “releasing your taxes.” If Deal sent the same thing to the IRS that he released to the public, he’d be in jail.

Too bad that’s not the case, the State of Georgia would be infinitely better off.

Po Dunk

September 15th, 2010
2:13 pm

A man in tight like this would do anything to escape. As governor, Deal would construct deal after crooked deal to get the money he desperately needs. If Deal had any sense of honor or common sense, he would withdraw from the race immediately and devote and his time & energy to extricating himself from his own private mess. The state of Georgia does not need its chief executive facing indictment on one hand and bankruptcy on the other. Barnes will now win in a landslide.

professional skeptic

September 15th, 2010
2:13 pm

Brent Hoffman
September 15th, 2010
1:54 pm

BH, you are clearly a paid political hack. The only reason you are saying this is because the crook has an (R) after his name, and most likely you’re on his campaign payroll.

Never in my life have I heard or read such an absurd load of apologetic BS/nonsense/claptrap as your comment.

WTF

September 15th, 2010
2:14 pm

Bad investments happen all the time. Every Wall Street firm did but do you still give them money to buy stocks? Yes and the reason why is that everyone makes bad investments but over the long haul the good outweigh the bad. This is not an issue. I woudl rather hear about hsi stance on issues then his personal financial situation. More BS political grandstanding to take us from asking real questions.

tim from trion

September 15th, 2010
2:15 pm

until now i was undecided on whom to vote for,now i will vote for deal.the man supported his family right or wrong and i admire that

joe

September 15th, 2010
2:17 pm

this is how it will play out, a big contractor will bail deal out , then when Deal is elected, he will steer big fat georgia contracts to that contractor..Oh yeah baby, thats how it’s done..Watch and see where that mystery money comes from. LOL

Palin 2012

September 15th, 2010
2:17 pm

Catherine S. and Joyce M. please let me borrow your purse for a stick of gum? This is what Deal will say when out of the blue these debts just go away if he becomes Governor because the slush fund will pay off the debt. A slush fund made up of tax payer money. Let him use your money Catherine and Joyce!

catlady

September 15th, 2010
2:17 pm

So how is he going to make it good? That question should scare everyone. We know he isn’t above going around legal obstacles to make money. Look out, taxpayers?

professional skeptic

September 15th, 2010
2:18 pm

WTF
September 15th, 2010
2:14 pm

In other words, WTF believes that just because we bailed out the crooked Wall St. banks, the citizens of GA should look the other way and bail out Nathan Deal.

Being unable to make good business decisions IS VERY MUCH an issue when you’re talking about choosing somebody to run a state. Please do us a favor and stop saying “This is not an issue” just because he has an (R) after his name.

WAKE UP, PEOPLE!

Martha

September 15th, 2010
2:19 pm

Here is parenting at it’s most screwed up…..loan/give them money in your POCKET or BANK ACCOUNT. Do not….DO NOT….use assets to secure a loan! To start a business? IN THESE FINANCIAL TIMES?? Are you kidding me??

Please…..leave Georgia alone, Mr. Wheeler Dealer!

Will

September 15th, 2010
2:20 pm

We need to be able to govern ourselves. Instead of a governor, we should have a board of governors who cannot make decision or policy without putting it to a vote amongst Georgia’s registered voters. We could vote quarterly.

Deal or No Deal

September 15th, 2010
2:22 pm

We expect our leaders to be smart business wise and family wise. Nathan Deal wasn’t smart on either. I too love my children. But the only way I would gamble everything for my children is if there were life and/or death circumstances. No wonder Deal only submitted an overview of his tax records. What kind of decisions will he make for Georgians as governor? Hopefully not any of this magnitude…

Deal or No Deal – It’s a game!
What / who is the real Nathan Deal?

Po Dunk

September 15th, 2010
2:23 pm

You can tell which posts here are made by paid Deal campaign staff-drones. Hack-flackery fools no one but idiots. Your boss is going down like the Titanic.

bart

September 15th, 2010
2:28 pm

Hey, The Deal Is On, surely you jest. What evidence is there that Barnes is crooked? On the other hand, we have ample evidence to prove that Deal is more than likely crooked: the ethics investigation in Congress that he avoided by resigning and the investigation by the federal prosecutor into his questionable business practices. Now on top of all that, we have this mess which certainly proves that he has poor judgement and is stupid. And, in addition, he’s trying to blame his kids for his own stupidity. He is not qualified to be governor!!!

Liberal/Conservative

September 15th, 2010
2:29 pm

Spin it how you will — “I was only helping a child” — the quesion remains: Can Georgia afford to have as its governor a man with such dreadfully poor judgment?