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In another black eye for Newt Gingrich, the flagship of what's known in Washington as "Newt Inc." has filed for bankruptcy.
In a Chapter 7 filing in the U.S. Bankruptcy Court, Northern District of Georgia, The Gingrich Group LLC, doing business as the Center for Health Transformation, filed for bankruptcy Wednesday. (Chapter 7 is "the chapter of the Bankruptcy Code providing for 'liquidation,' that is, the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors," as defined by the federal courts.)
The vast majority of Gingrich's net worth is tied up in the Gingrich Group. Gingrich is worth overall between $7.1 million and $31 million, according to his financial disclosure. He lists a promissory note from Gingrich Group as being worth between $5 million and $25 million.
Rogelio Solis / AP
Republican presidential candidate Newt Gingrich speaks at the Gulf Coast Energy Summit in Biloxi, Miss.
Gingrich was chairman of the group until May of last year, when he announced he was running for president. Since the candidate turned focus toward his presidential run, the Gingrich Group has struggled to raise money, leading to its eventual collapse.
The bankruptcy comes at a time when Gingrich's campaign is struggling to regain any momentum. He has won only two states during his run for president -- South Carolina and Georgia, his home state -- and he lags far behind front-runner Mitt Romney in the delegate count, in third place with just 137 out of the 1,144 needed to become the nominee.
Mitt Romney has half the delegates he'll need to secure the GOP nomination, but Newt Gingrich refuses to leave the race. The Washington Post's Karen Tumulty discusses.
Though he continues to pledge that he's "going to Tampa," the site of the Republican National Convention this summer, Gingrich is sounding increasingly like a candidate fighting for relevance rather than the presidency.
(Here are the bankruptcy filings - Part 1, Part 2.)
The news of the bankruptcy was first reported by the Atlanta Business Chronicle and confirmed by NBC News with the court in Atlanta and a federal court database search.
Gingrich pulled in $2.5 million -- the bulk of his income -- from January 2010 to August 2011 from sister organizations Gingrich Productions and Gingrich Communications.
On the campaign trail, Gingrich has touted ideas coming from his health think tank. And it has been a source of controversy, as questions were raised -- and other campaigns questioned - whether Gingrich acted as a lobbyist on behalf of the group in Georgia.
The Washington Post wrote: “[H]is time there exemplifies the former Georgia congressman’s post-legislative career as a well-paid consultant and policy guru, a role that earned him and his companies tens of millions of dollars over the past decade.”
NBC's Kathy Johnson and Marcie Rickun contributed to this report.
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Conjunction word...sorry...type too fast sometimes.
Grammar is dead ... it w killed by Email, then revived by spell checker.
The finally, irrevocably terminated by Twitter... (stake in the heart, exposed to sun light, sprinkled with Holy Water.. ashes of the ashes were collected - divided into seven Urns, wrapped in biblical texts. Handed off to Buddist monks who were dipatched to 7 different corner of the globe. Each of who, as a final act of devotion to all mankind, committed suicide by self - immolation so they could never speak of where they buried each canister).
However, there is rumor that Universal still has rigths to the franchise. .... dun ta dun dun? coming to a theater near you summer 2016....
Maybe he can take some of his "wife's" jewelry back to Tiffany's.
His group will shed its debt, but Newt will of course keep all his profits he skimmed while the costs were all paid for by the election money! He should be made to pay a piece of the expences for his book tour and sales! He's a Con!
Take taxes on his income increase over last year!
I am sure Mitt will be happy to "restructure" his corporate interests for him....
*snicker*
Bankruptcy seems to be an all too common solution for Newt! No wonder he supports allowing states to go bankrupt! Not only is he a moral failure but a business failure as well. Gingrich has been an embarrassment to the republicans and americans for years. Job well done by the republicans in 2012 to send him packing.
Maybe he can take some of his "wife's" jewelry back to Tiffany's.
I'm shocked... No really!
<smirk>
I guess you have to have more income than expenditure. You would think a Conservative would know that. Maybe he was channeling the old Cheney saw, "Deficits don't matter."
I need to do this also but I am a real American and pay my bill not duck out like a thief what a dirt bag be a man pay your bills and start again don't make everyone else loose so you can gain. He is not an American
Maybe they could all take jobs running Mitt's automobile elevator. The pay isn't much, but what a ride...
Voice of wisdom
Maybe they could all take jobs running Mitt's automobile elevator. The pay isn't much, but what a ride
LOL... or maybe he could become a janitor like he suggested that the black youth in the inner city learn to do. He is bouncing checks now I heard on the news this morning... gee, I wonder what Newt would say about the unemployed, the poor or minorities bouncing checks? Maybe God has decided that Newt needs to learn a life lesson.
The Gingrich Group was organized in 1999 as a consulting company. Over time, its non-health clients were dropped, and it was renamed the Center for Health Transformation. The two companies had revenues of $55 million between 2001 and 2010. The revenues came from more than 300 health-insurance companies and other clients, with membership costing as much as $200,000 per year in exchange for access to Gingrich and other perks. In 2011, when Gingrich became a presidential candidate, HE SOLD HIS INTEREST IN THE BUSINESS. In April 2012, the Center for Health Transformation filed for Chatper 7 bankruptcy, planning to liquidate its assets to meet debts of $1–$10 million. While the company was FOUNDED by Gingrich, you fail to realize that he sold his share of the company. The new buying parties CEO, as can be found and named on the bankruptcy filing is Nancy Desmond. Newt did not file for Bankruptcy. Nor did he have any ownership in this company. Him selling his share of the business is likely the reason the valuation and worth of the company failed. Because Newt was the one that attracted and brought IN the clients and revenue.
If you look at the bankruptcy petition past the front page you’ll see that in the list of creditors (parties owed money by the company) include:
Gingrich Productions
Attn: Callista Gingrich
7410 Windy Hill Court
Mc Lean, VA 22102
Newt and Callista Gingrich
7410 Windy Hill Court
Mc Lean, VA 22102
These debts are likely in large portion monies OWED to Newt, for the price he sold his share of the company for.