	physio technology phyt sees loss in default physio technology inc said it expects to have a third quarter ended march loss of about dlrs and is in default on its bank loan because of the resignation of chairman and chief executive officer the company said the loss followed four quarters of modest profits in the year ago quarter it ed dlrs or one cent a share for the first half of fiscal it reported a profit of dlrs or two cts a share compared to a year earlier loss of dlrs or cts a share it said president michael r hall will assume the duties of chief executive officer physio technology said the resignation of chairman james c lane can constitute non compliance with its series a convertible subordinated debentures due and a default under its agreement with the merchants bank of kansas city it explained a declaration of non compliance under the debentures would create a a default under the loan agreements requiring immediate payment of mln dlrs of debentures and about dlrs outstanding under the bank credit line the company said the debenture holders intend to waive the non compliance but reserve the right to withdraw the waiver at the end of any day period physio technology said it is changing its field sales force to independent representatives and dealers from employees to significantly reduce its fixed overhead its statement did not indicate how many employees would be affected by the move the company said lane will become an independent dealter for the company in certain midwestern states he will continue to serve as a director it added reuter 
