Gingrich's private ventures are going bankrupt

[Jamie B]

http://news.yahoo.com/gingrichs-private-ventures-going-bankrupt-100728262.html

When he entered the race for the Republican presidential nomination in May 2011, Newt Gingrich was the prosperous head of a small empire commonly known as Newt Inc, which included both for-profit consultancies and nonprofit foundations. Altogether, these entwined ventures pulled in more than $110 million over the past decade. Now the vestiges of this empire are mired in debt, as is Gingrich's campaign fund. A bankruptcy proceeding under way in Atlanta will determine whether the one company still owned by Callista Gingrich, Gingrich Productions, will lose an expected payout that now constitutes the bulk of the Gingriches' net worth.

In addition to the $4.8 million in debt from his presidential run, it looks as if his other ventures are going bankrupt as well.

His Center for Health Transformation is currently in bankruptcy, and Newt had sold his share to his partners when he began his presidential run for %6.4 million. Due to the bankruptcy, he will most likely never see that money.

Another corporation, American Solutions for Winning the Future was dissolved last summer, also mired in debt.

Interesting that these financial issues were never picked up by the MSM.

Given the inability to keep these entities solvent, one wonders how Newtie would have handled the US economy.

 

[HankB]

One wonders what actual product or service these corporations were going to provide, how they were originally funded, and what kind of business plan they had.

And they were mired in debt? From where?

Were I a banker - or venture capitalist, or investor seeking a return, or even a hot dog vendor - I would not have loaned money or extended credit to entities with names like American Solutions for Winning the Future or Center for Health Transformation.

[RevDisk]

One wonders what actual product or service these corporations were going to provide, how they were originally funded, and what kind of business plan they had.

And they were mired in debt? From where?

Were I a banker - or venture capitalist, or investor seeking a return, or even a hot dog vendor - I would not have loaned money or extended credit to entities with names like American Solutions for Winning the Future or Center for Health Transformation.

Uh, they're shell companies? The "venture capitalist" is probably Gingrich, or someone giving him cash. They're probably just legal entities to segregate activity. If his accountant did his job, those companies could burn to the ground and Gingrich walks away with his own money. Assuming his accountant did follow GAAP, properly incorporated, did not comingle assets, arms reach transactions, etc.

[Tallpine]

Given the inability to keep these entities solvent, one wonders how Newtie would have handled the US economy.

Just about like the last couple presidents   

Who needs solvency when you can print money 

[Perd Hapley]

American Solutions for Winning the Future was dissolved last summer, also mired in debt.
 

Well doesn't that just sum up the current state of affairs?