BRIEF-Admiral Bay Resources says petition for foreclosure action filed by lenders

May 10 (Reuters) - Admiral Bay Resources Inc: * Announces petition for foreclosure action filed by secured lenders, negotiations with secured lenders * Says US subsidiary is in default under its credit agreement * Says Admiral Bay USA is indebted to lenders in the principal amount of abt $42.5 million * Should conditions not be met, likely to seek protection under provisions of federal bankruptcy statutes * It and lenders failed to agree on terms under which Admiral Bay would have been purchased by third party * Continues to work with its lenders to seek a consensual resolution to the foreclosure petition ((Bangalore Equities Newsroom; +91 80 4135 5800; within U.S. +1 646 223 8780)) (For more news, please click here) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.