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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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The man can't even keep his own company out of bankruptcy yet he wants to run the country.
hey maybe obama the clown can give him a bailout with our tax dollars!!!....ANYONE BUT obama IN NOVEMBER!
Dude,, Obama ended the era of Bail Outs, "Bail Out Romney" loves them...
WTF do you think all the Republican rage against regulation of the financial industry & there demand to over turn Dodd-Frank is about? ---- Dodd Frank made sure banks & could pay for their own Bail Outs
Simply put, Republicans have been playing you folks for total fools all along
Conservatives surrendered their own principles & so has the Tea Party who support him
When you actually find a candidate that can beat Obama, let the country know.
jim?..did you vote for obama?...talk about a fool!
Kinda think he's a die hard. Even goes to show the wealthy also run out of money.
Hahahaha...and we are supposed to trust the country to this person? Just one more way the lame gop crap has come home to them. But of course we all know he will blame this on Obama for being black....Vote the way of sanity...OBAMA 2012...
This is what happens to someone who thinks they are "too sexy for their pants". I guess nobody thought he was as great and he thought he was. I hope he has settled with Tiffany s. He will still reinvent himself and make more money. I hope he doesn't try another "think tank". What an ego this man has.
So what's this about begining financial responsibility to Washington... Your enormous ego wouldn't even let you give up the fight when the writing was on the wall months ago.
There goes Newt & Callista's membership to the Virginia Swingers Society
@Jim-372206 LMAO You think that this has left Newt penniless, you are dumber than your picture implies.
I hope Newt never gets any credit again, damn scum bag...
Another one bites the dust.
and, why would we care.... ?
...What goes around, comes around, and is just catching up to a
"CONTERFEIT CONSERVATIVE"... God Bless America.. AGAIN !
No fiscal health.
nancy pelosi said it best gingrich will never be president look like he took a shalacking....severe beating: decisive defeat In another black eye Newt Gingrich
great
Perhaps Callista can sell that hairdo to NASA for use in designing the next Space Shuttle heat shield. Between that and checking under the seat cushions, they should be OK if they clip coupons for the grocery store.
This is a guy who promised us $2.50 gasoline? Who promised us fiscal responsibility? Who boastfully criticized our president on absolutely everything! Don't think for a minute we bought into it Newt, we know ye, we know ye all too well. Hope you have enough left to catch a bus out of town. The ship of fools is down yet one more.
Papa Smurf is filing bankruptcy? Are you kidding me? This guy has MILLIONS! Pay your damn debt like the rest of us. Loser.
And yet he still thinks he would make a great president. Do not criticize others for their lack of business skills when you operate in the dark side of your walnut size brain. Geez - what a total skumbag.
After the bankruptcy court is through with him, he'll be living somewhere in a flop house in Virginia getting food stamps and unemployment.
All I had to do was read the first line. Irony is defined as "Newt Gringrich & Think." The guy has sociopathic tendencies. The ONLY pain he can feel is his own. He can never equate cause and effect. Instead, he justifies what he believes and comes up with the reasons to get there. People CAN change BUT Newt never has. Like most people, he can't see the forest for the trees and he never will be able to. I do NOT like people like him and I have met many. I can't change anyone SO people lke him I keep as much out of my life as possible, NO matter how successful they are. IF I have to work with people like him, and I have, I figure our the best way to deal with it and tell myself at the end of the day, I get money.
mcpaddywack
hey maybe obama the clown can give him a bailout with our tax dollars!!!....ANYONE BUT obama IN NOVEMBER!
your life must be very empty when all you can do is fill your heart with hate for someone who is differnt from you
Wouldn't it be funny if Newt Gingrupt ended up on Medicare?
Perhaps Newt and Calista can become a janitor at a local school?
Well, they are toliet bowls.
i'm pretty sure the word "moral" was left out of this headline,. should have read "Gingrich think tank files for moral bankruptcy
Well at least Newt has released his health care plan for the American people to see. :)
You mean the road show of clowns is starting to break up? For the horrors of it. I so much enjoyed their comedy show, and now they are going to take that away from us? Boo Hoo Hoo.
Still gotta wonder how his open marriage is working, and who is his wife bedding?
All of you who were going to vote for this moron-see what you would have gotten. Unfortunately those that were truly better than him were out quite awhile ago, or never in. You idiot Republicans are going to make us loose to the king and with that, our country will be gone. Thanks for nothing. I'm so disgusted, I hardly know what to say, other than Surprise! He helped run our country into bankruptsy, just like he did himself.