Allen: Nathan Deal is sound financially

Published 11:15 pm Saturday, September 25, 2010

A local accountant and supporter of Nathan Deal’s campaign for governor said Friday that the gubernatorial candidate’s finances are solvent and his most recent financial disclosure report is a more accurate reflection of Deal’s financial picture.

“Nathan Deal is definitely not insolvent and will not declare bankruptcy,” said Jimmy Allen, a local accountant. “It’s ridiculous because the man is worth $2.8 million.”

On Thursday’s disclosure, Deal’s assets are listed at $6,689,971 and his liabilities at $3,737,500.

Allen said Friday that he spent four hours with reporters with the Atlanta Journal Constitution and an Associated Press reporter Thursday at Deal’s headquarters in Gainesville going over the latest financial disclosure and explaining Deal’s assets, liabilities and net worth.

Deal filed a new financial disclosure report Thursday. Deal’s campaign has acknowledged that it made errors in previous filings because it was not familiar with state reporting requirements after filing federal financial disclosure statements for the 18 years he was in Congress.

“The federal disclosure forms aren’t as in-depth as the state forms,” Allen said.

Allen was hired by Deal’s campaign to review the candidate’s finances prior to Thursday’s filing. In the previous disclosure, Deal had listed the value of the real estate he owns at $1.9 million. After Allen’s review, the latest disclosure lists those properties as valued at $5.7 million. Also in the previous disclosure, Deal claimed no notes payable from banks. After Allen’s review, the latest disclosure lists $2.9 million in notes payable to banks, in addition to Deal’s home mortgage of $810,000.

Allen took the appraised and estimated value of Deal’s portion of jointly owned business property in the amount of $3.9 million and discounted the value of those properties to $2.8 million to allow for the decline in market values.

Deal owes $2.1 million on his daughter and son-in-law’s failed business, Wilder Outdoor, Inc. Allen said Deal plans to cash in an IRA valued at $750,000 and sell the Wilder Outdoor building for $800,000, leaving $500,000 due on the note. Deal will also sell 14 acres of his daughter’s property, which was collateral on the Wilder Outdoor note, for approximately $350,000, leaving $200,000 owing on the note.

“The bank appraised the Wilder Building for more than $2.1 million when the economy was better,” Allen said.

Allen said he met with two of Deal’s bankers this week and “they are very comfortable and have agreed to renew the notes based on our plan to liquidate assets and pay the notes in full.” Allen said the notes will be renewed for four years, which will allow time for liquidation of collateral to pay the debt.

Allen said that all of Deal’s business notes are being amortized and the businesses are making monthly payments.

“I could not take Nathan’s financial numbers and make him insolvent if I wanted to and neither could the bank,” Allen said.

To contact senior reporter Angie Thompson, call 382-4321.