Convergence problem while simulating a degaussing process

Hello,
I'm currently running 3-D simulations of ferromagnetic materials that are being degaussed. When I use the "Magnetic Fields" node it works quite well, however, then everything depends on the magnetic flux B, which physically doesn't really make sense.
So I would rather have everything depend on the magnetic field H, which is why I am trying to run my simulations using the "Magnetic Field Formulation" node. Unfortionately, so far it hasn't worked. The problem is, I always get the error message:

Nonlinear solver did not converge.
Maximum number of Newton iterations reached.
There was an error message from the linear solver.
The relative error (4e+02) is greater than the relative tolerance.
Time : 4.358435242653585e-07
Last time step is not converged.

I have attached the model. Any Ideas what the problem might be?

Thanks in advance,
Rook