Bay Shore, N.Y. After a year of chaos, Graham-Field Health Products is considering hanging up a "For Sale" sign.

The company's newest management team is exploring the possibility of selling all or part of the business after reaching an agreement in principle with its banks to waive certain covenants and obtain an extension of its credit line to April 30, 2000. The investment banking firm Warburg Dillon Read has been retained to review options.

"Our new management team will be focused on improving productivity, reducing costs and working with our investment bankers on a complete review of strategic options for the company," said John McGregor, chief executive officer.

McGregor is the fourth to hold that position since the August 1998 departure of Irwin Selinger, who was followed by Rodney Price and Paul Bellamy.

Officials said they expect a sizable loss for fiscal 1998, but at press time, the year's financial results were yet to be released. Results were delayed March 22 when the company revealed that accounting irregularities and errors would add more than $10 million in additional losses for fiscal 1996 and 1997. The company reported losses of $10.66 million for fiscal 1996 and $38.6 million for fiscal 1997, adjusted from $8.96 million and $30.23 million, respectively.