(Bloomberg) -- Shares of the EV unit of embattled real estate developer China Evergrande Group more than doubled after it said liquidators are in talks with a potential buyer to take a stake in the company and may also extend a new line of credit to support production.

The stock jumped as much as 113% — the biggest gain on an intraday basis in almost 10 years — in Hong Kong on Monday, when trading resumed after being suspended since May 17. The unit, Evergrande New Energy Vehicle Group Ltd. said Friday it was being pursued by local government authorities to pay back 1.9 billion yuan ($262 million) in subsidies and incentives.

Read More: Evergrande’s EV Arm Chased to Repay Subsidies in Latest Blow

A group of liquidators representing the owners of China Evergrande NEV reached a preliminary agreement with an unidentified buyer who could take an initial 29% stake in the automaker, according to filing on Sunday. The deal, which still requires due diligence, would include an option to buy an additional 29.5% later. 

The agreement includes a possible credit line to be arranged by the potential buyer, who isn’t connected with Evergrande NEV. If the deal goes ahead, it could trigger an obligation for a “mandatory general offer,” according to the filing.

Evergrande NEV has been struggling since its parent got sucked into China’s property crisis in 2021. 

The EV maker had produced only 1,700 of its Hengchi EVs as of the end of 2023, and its Tianjin factory suspended production since this year. It reported a loss of 12 billion yuan for last year. Valued at more than Ford Motor Co. and General Motors Co. combined at its peak, the company was worth just $528 million when the shares were suspended. 

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