Sept 26 (Reuters) - Liquidators of debt-laden China

Evergrande ( EGRNF ) are still in talks with a potential buyer

to sell a stake in the electric vehicle arm of the company with

a view to provide a new credit line to support production.

In its initial days, the electric vehicle (EV) maker aimed

to take on Tesla and had a market valuation higher than

Ford Motor ( F ), but it has since been mired in the debt crisis

engulfing its property developer parent.

China Evergrande New Energy Vehicle ( EVGRF ) said on

Thursday liquidators of its parent company China Evergrande ( EGRNF ) had

not yet entered an agreement with any potential stake buyer nor

has there been any deal to extend credit to the electric vehicle

manufacturer.

The non-binding deal put-forth by China Evergrande Group ( EGRNF )

liquidators provides for a third-party buyer to take a stake of

29% in the unit, with an option for 29.5% more, the EV arm had

said in a statement in late May.

The EV maker, which in August said two of its units had

commenced bankruptcy proceedings, has been severely short of

funds and has faced pressure from its creditors and a local

government.