PHYSIO TECHNOLOGY <PHYT> SEES LOSS, IN DEFAULT Physio Technology Inc said it expects to have a third quarter, ended March 31, loss of about 200,000 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 earned 11,000 dlrs, or one cent a share. For the first half of fiscal 1987, it reported a profit of 42,000 dlrs, or two cts a share, compared to a year earlier loss of 294,000 dlrs, or 17 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 1996 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 1.8 mln dlrs of debentures and about 450,000 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 30 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.