Roy Terry, former chief executive officer of garment maker Terry Manufacturing Co, has agreed to plead guilty to an incident of fraud that bankrupted the company.

Terry overstated assets by $35 million in a case that also caused 300 workers to lose their jobs. Court documents show his charges to include bank fraud, wire fraud, illicit use of pension funds, and unlawful shipping of money across state lines.

Terry Manufacturing produced goods such as military fatigues and uniforms for corporations including fast-food giant McDonald's.

The company still owes debts of over $20m to banks, the charges state.