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APBnews accepts buyout
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August 21, 2000: 4:06 p.m. ET
Online crime news site agrees to sell assets to SafetyTips.com
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NEW YORK (CNNfn) - APBnews.com, an Internet news service focusing on crime reporting which last month filed for bankruptcy protection, has accepted a $950,000 buyout offer from SafetyTips.com.
Launched early this summer with backing from Rare Medium Group Inc. (RRRR: Research, Estimates) and Apollo Management LP, SafetyTips.com is a Web site focused on safety issues at home and in the workplace.
"We have filed papers that say APBnews.com has received this offer and will accept it unless somebody comes in with a higher and better offer," said APBnews.com spokesman Joe Krakoviac.
The New York City-based company in early July filed for Chapter 11 bankruptcy protection and laid off the bulk of its workforce, roughly 140 employees. It has since hired back roughly two dozen of those.
The company had been in discussions with a range of potential buyers, including some of large multi-national media firms.
SafetyTips.com has agreed to pay the $950,000 for all of APBnews.com's assets. It will not, however, assume any of the company's roughly $7 million in outstanding debt, a company spokeswoman said.
By taking APBnews.com into its fold, the fledgling company would get the benefit of its name recognition and quality news content, she said. APBnews.com won an award this year from the National Press Club for being the best journalism Web site.
"If you look at their content both from a safety standpoint and from a journalistic integrity standpoint, they've got quite a reputation," the spokeswoman said. "It's a perfect marriage of two companies."
SafetyTips.com has agreed to lend APBnews.com debtor-in-possession financing to enable it to continue operating as the details of the transaction are worked out. However, there is no guarantee that the deal will be consummated.
"It's up to the bankruptcy court at this point to either approve or deny it," the spokeswoman said. 
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