Dutch carrier files for bankruptcy (and it's not KPNQwest)

NEWS Versatel, the Dutch data carrier which went E1.7bn (£1.1bn) into the red when it built a pan-European cable network, has filed for bankruptcy protection. Despite the perilous financial state of the company, the market reacted positively to the news sending shares up 30 per cent. Investors hope Versatel will seek to convert its debt into shares and cash following the lead of the likes of NTL. Investors also believe that by filing for protection against creditors Versatel can avoid repeating the collapse of KPNQwest.