Berlin: Swedish battery manufacturer Northvolt's financial troubles could cost the German federal government and the northern state of Schleswig-Holstein dearly, following the company's bankruptcy filing in the United States. According to Qatar News Agency, Northvolt, which is building a battery factory near the German town of Heide, has put 600 million euro ($630 million) in loans from Germany's state-owned KfW development bank at risk. The German government and the state government of Schleswig-Holstein each guaranteed half of this sum. The firm filed for Chapter 11 US bankruptcy protection on November 21 to enable it to restructure its debt. Under US law, during the restructuring process, creditors' claims, including those from the German government and the KfW, cannot be recovered - even though the company's German operations are not part of the Chapter 11 procedure. The loans, which were provided via a convertible bond, were strictly tied to the factory's construction and the Swedish parent company do es not have access to these funds, the German Economy Ministry said. The federal government will reimburse the KfW for the bond's value plus incidental costs by December, it said. Schleswig-Holstein has assumed a counter-guarantee of 300 million euro for the convertible bond and will reimburse this to the federal government. If the restructuring is successful, then Northvolt will repay the 600 million euro plus incidental costs. Northvolt has been seen as a major hope for Europe's battery production for electric vehicles, with key stakeholders including Volkswagen, Goldman Sachs, and BMW.