Bloomberg News

Celpa’s Defaulted Bonds Rally as Vinci, GP Seek to Buy Utility

May 29, 2012

Defaulted bonds issued by Centrais Eletricas do Para SA (CELP3), known as Celpa, gained as Brazilian private-equity funds Vinci Partners Investimentos Ltda. and GP Investments Ltd. seek to purchase the bankrupt utility.

The securities climbed 4 cents to 35 cents on the dollar as of 11:43 a.m. in New York, according to Trace, the bond price reporting system of the Financial Industry Regulatory Authority.

The private-equity funds plan to merge Belem-based Celpa with Cia. Energetica do Maranhao, a Brazilian utility that’s controlled by Vinci Partners, said the people, who asked not to be identified because the discussions are private. Officials at Vinci Partners, GP Investments, Celpa and Cemar declined to comment.

To contact the reporters on this story: Boris Korby in New York at; Cristiane Lucchesi in Sao Paulo at

To contact the editor responsible for this story: David Papadopoulos at

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