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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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Robbing Peter to pay Paul didn't workout LOL
Peter & Paul? Sounds almost Biblical... Only they got away with stealing the Jesus Movement away from Jesus
Right wing politics of the Jesus era wasn't all that different then now,,, It's all for Mammon, the Son of Satan,,, Greed & Gluttony
He wants to run a country, but can't run a think tank? Maybe their thinking was far off base??
no wonder the country in such a mess with people like this in office ! democrat or republican. it's politician's that got us in too the mess were in !!!
Wait, wait, I think the House Republican Budget, the one that Mitt Romney is hugging, has a loop-hole that will save all Republicans and Republican Think Tanks which are in financial trouble. Under that budget Gingrich can rise again. Praise the Ryan !
Your fiction is close to B.S. You should try righting biographies such as Obama's criminal connections.
Well I guess everybody will just have to think about the next great bankrupt country "US" with the current dictator and his money printing policies and his lack of business exp not to mention his appointed czars with only 8% busniness experience. Lets see a LLC or a whole country!
Sounds like Newt is much smarter than anyone on Newsvine. Not only does he have several companies but he knew how to dump the unproductive one without taking it on the chin. Yes, many of you will find fault with his actions but honestly speaking we could use some brain power in government right now.
I hope this doesn't mean a "New and improved" contract with America is heading our way!
Gawd, what losers these candidates are turning out to be. Newt has truly always been a legend in his own mind.
A Gingrich "Think Tank!!" Now that is a self-contradictroy phrase if ever there was one. "Think??" Give me a break!!!!
Where do you expect jobs to come from when the manufacturing sector is down to 12% of the total employment available. Can we all be insurance agents? Lawyers?
"You want fries with that burger?"
Since Newt just declared bankruptcy. It is time for Willard to step in, take over, sell what's left and dump Newt on the street.
Great idea, except Newt is too smart for that. He is about three steps ahead of everyone like it or not. He actually would have been the best president in today's world.
Newt was always more effective as the outsider or the person not in power. Isn't it kind of illuminating that everyone associated with him when he was speaker wanted nothing to do with him on this presidential run, and had nothing good to say about his reign.
Well great if you can't pay your bills just don't pay them! Is this what the Tea Party will ask for next?
He needs to go back to Georgia, eat some peaches and chill out. He will never be President of the United States of America. Never! He knows it. He is only out there for face time. He doesn't even have a platform that the Republican Party would approve of.
PalmSpringsCalif
Its funny how someone who proclaims to be so smart, can actually do such dumb things .
Ya, kind of like the guy we have running the country right now.
Newt could be the poster boy for the "Republic-cons". Never again can they say they stand for fiscal responsibility...
my gosh, this is just the kind of guy we need leading our country--WHAT A JOKE!!
EXACTLY!!!!!!! Maybe Mutt could bail him out with his millions.
Maybe this "think tank" could have saved some money by having Newt and Callista clean the toilets and mop the floors...That way they could get a sense of what an actual job is. What it is like to go to work. It was supposed to work for poor kids, right?
You forget liberals do not mop or work at anything. They protest because no one gives them money or a place to live. They prefer freebies or gimmes.
Awesome post!
Think Tiffany's will extend his line of credit?
Without a doubt. His net worth says it all.
ITS TIME for nasty newt to go someone should tell that fool the show is over since he understand NOTHING
No doubt he'll blame it on gas prices.
I see all the intellectual left wingers and know it alls are busy posting again. First off Newt is not bankrupt; it is the "Think Tank" with his name on it that filed bankruptcy. Secondly; if your guy is so great; why is unemployment and under employment hovering at 20%; and why does he keep Timothy printing money so fast that it would make even left wingers heads spin? You are slowly but surely seeing the United States follow the foot steps of the Greeks. Spending more that you bring in will not and can not work. You are fast approaching the magic number where more people are in line for hand outs then working. Whose your Daddy then? And oh by the way; after the Supreme Court strikes down Obama Care and later before the General Election uncovers your Potus's scam to being a legal citizen; who then will be your Nominee?
I stand with you angryveteran.
Oh noooo - here come the birthers. lol.
So? I do not stand with angry veteran. Papa Smurf deserves no praise.
Maybe a sack full of Tiffany jewelry would help pay off creditors.
Newt who
Newt Gingrupt
Papa Smurf
so now his financial bankruptcy will match his moral and intellectual bankruptcy...
Quite well I would imagine
Not even you can truthfully say Newt is not smart. His IQ would over shadow yours any day.
@Larry - But what good does it do him?
The finances followed the ideaology.