Sept 26 (Reuters) - Liquidators of the electric vehicle

arm of debt-laden China Evergrande ( EGRNF ) are still in talks

with a potential buyer to take a stake in the company with a

view to provide a new credit line to support production.

In its initial days, the electric vehicle 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 its liquidators 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 by liquidators acting for China

Evergrande Group ( EGRNF ), Evergrande Health Industry and Acelin Global

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 firm, 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.