Skip to comments.Gingrich group files for bankruptcy
Posted on 04/05/2012 11:14:59 AM PDT by C19fan
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.
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Grim news for Speaker Newt Gingrich his FORMER group
Speaker Gingrich has not been running the health care group (note it says, former which I assume means that he turned it over to someone else while he has been running for President.) Often when the person who starts a big project leaves, it can fail. But it still must come as a huge disappointment to him.
Im guessing this is Gingrich group going bankrupt to ensure that Newt himself doesn’t have to.
Okay, that makes more sense.
Okay, that makes more sense.
Without Newt’s involvement I can see how this could happen to a company. Being dependent on clients from inside the beltway, I can see how the establishment Republicans (and Democrats) probably blacklisted his company. Smells like Romney.
Newt’s quote about the signers of the Declaration of Indepence “risking their fortunes and sacred honor” comes to mind. This just goes to show that Newt has been all in since the get go. Go Newt!
Hmmmm...when a Bain Capital company goes bankrupt, it’s a resume enhancer.
The Atlanta Business Chronicle quoted an aide to Mr. Gingrich, Stefan Passantino, as saying the bankruptcy filing took place after the candidate had divested himself from the center and its operations.
Yes, he had to sever relations with several of his groups (profit and non-profit) to run for president (he even didn't run for President in the 2008 because he thought it was more important to take time to develop his American Solutions public policy group:
(see Gingrich's Secret Weapon: Newt Inc. - FR, 2012 January 25, and Newt Gingrich: 'Defeating Obama is a matter of national security' - FR post #23, 2012 February 21)
In light of upcoming Supreme Court decision on ObamaCare, the group may have outlived its usefulness and as such, the liquidation via Chapter 7 of bankruptcy code is the cleanest (really, the only) way of disposing these for-profit and non-profit public policy groups or corporations.
For example, American Solutions for Winning the Future, founded by Gingrich in 2006 using a $1 million donation from Las Vegas Sands's Sheldon Adelson, famous for its "Drill Here, Drill Now, Pay Less" which later morphed into "Drill, Baby, Drill" at 2008 GOP convention, was liquidated and another Gingrich group, American Solutions took its place.
Besides, without Gingrich's direct participation the group may not have the cachet and fund-raising ability needed to continue with modified sense of purpose, in post-ObamaCare world. Newt may well be very much an indispensible man, in this respect.
I only wish that government worked this way - laws, regulations, departments, agencies, positions that have long outlived their usefulness would be liquidated instead of beingperpetually funded without any regards to their originally stated purpose, often even more than when they did serve any intended purpose (if they were ever truly needed).
Newt's quote about the signers of the Declaration of Independence "risking their fortunes and sacred honor" comes to mind. This just goes to show that Newt has been all in since the get go.
Rings true. It was very interesting to see the "transformation" of Pat Robertson, over several months, on The 700 Club, in that respect.
Just a couple of month after he answered a viewer's question about Mormons and LDS as not a true Christian religion - in essence, pronouncing it a cult - he officially endorsed Romney. When Gingrich won South Carolina and exposed Romney's lies that he "created 100,000 jobs" while at Bain, he practically screamed (not verbatim, but close) "Newt, what are you doing? Stop this, get out. You will need work... nobody will work with you, how are you going to make money?"
That was quite jarring to see. Robertson seemed much happier later, when Santorum started picking up the "beauty contest" primaries and caucuses in states where Gingrich (or Romney) decided not to compete or contest (each happy to give them to Santorum rather than to other candidate, by default).
Robertson correctly figured that Santorum will be splitting conservative (in particular, evangelical, after famously and bitterly split "endorsement" by the "evangelical leaders"), votes with Gingrich, instead of him playing tag team against Romney (which is exactly what happened because Santorum wanted to make a play for himself as VP or move himself up on the 2016 "his turn" ladder).
Thanks so much for such an informative post.