Armalite was sold to Elisco Tool Manufacturing Company, of the Philippines. Inventory, tooling, and machinery were dispatched from the U.S. plant to the Philippines. The process fell apart due to political events in the Philippines. The political and economic links of the government were dramatically shifted, and Elisco was unable to carry out the AR-18 production. The U.S. arm of the operation was closed in 1987. Independent of Armalite, Karl Lewis and Jim Glazier formed a company named Eagle Arms in Coal Valley Illinois in 1986. Eagle Arms initially marketed M16 and AR-15 type rifle parts. The early Stoner patents had expired, and Eagle was able to build both parts and complete rifles. In 1989, Eagle commenced production of complete rifles, with LMT serving as the major supplier.