Xerium Technologies Inc. paper disclosed that it may default on some of its loans and that it could file for bankruptcy soon if the lenders call in the debts, Bankruptcy Law360 reported yesterday. The company said that it “was in compliance with its financial covenants under the credit agreement at Dec. 31, 2007 and expects that it will generate cash flow from operations sufficient to service the debt under the credit agreement prior to the stated maturity of the debt if there is not otherwise an event of default under the debt.” However, Xerium said that it expects it will not meet the terms of the covenant for the first quarter of 2008 and afterward. The company said that it is contemplating a private placement of equities in order to generate enough cash flow, through private investors, to pay down the debt it has absorbed from its credit agreement.