Brentwood, Tenn. -- American HomePatient is in default with one of the financial covenants in its credit facility, officials said, and is negotiating with lenders to amend the facility.

The company had projected in its quarterly report in November that it likely would not be in compliance as of Jan. 31 because the covenants would become more restrictive on that date. Officials did not specify the covenant in which the company is in default but said it is current in principal and interest payments.