AMS Homecare Inc. announced to pay $6.2 million as part of a settlement with HG. Soliman Enterprises Ltd., a partner that has helped keep its business afloat in recent months. The Vancouver-based company said it also plans to file a lawsuit against competitor Eclipse Medical Ltd.'and certain individuals' in order to seek damages related to the sale of its Canadian assets earlier this year. AMS stock has been under a cease trade order since July 2006, which AMS said has prevented it from raising money and put it in violation of its bank covenants. The company kept operating with financial assistance of private firm HG. Soliman, which was owned by AMS CEO Harj Gill until August 2007. In October 2007, AMS sold its Canadian assets to Eclipse Medical. In a release, AMS alleges former directors of the company 'conspired' with Eclipse Medical and 'certain employees of AMS Homecare Inc. to damage the company.' AMS also said the alleged conduct 'has caused significant damage' to AMS and its partner HG. Soliman because Eclipse Medical is now a competitor. As a result, AMS settled with HG. Soliman after it was unable to meet the terms of their agreement due to the damages AMS Homecare Inc. has suffered from the actions of the ex-employees and ex-director and others.