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                                                                   EXHIBIT 10.42

January 30, 2001

Alfred West
1657 49th Street
Brooklyn, NY 11204

Dear Mr. West:

         The  purpose of this letter is to set forth the  agreement  between you
and Viatel,  Inc.  ("Parent") and its subsidiaries and any of their predecessors
including  without  limitation,   Destia   Communications,   Inc.  (collectively
hereinafter referred to as "Viatel") regarding your resignation from Parent as a
director, officer and employee and as a director or officer of any subsidiary of
Parent. This Agreement supersedes prior agreements among the parties,  including
(i) the Employment  Agreement dated as of August 27, 1999 between you and Viatel
(the  "Employment  Agreement"),  (ii) the  Stockholders  Agreement,  dated as of
August 27,  1999,  among  Stockholders  (as  defined  therein),  Parent,  Viatel
Acquisition  Corp.  and  Destia  Communications,  Inc.  and  (iii)  the  Tolling
Agreement,  effective  as of  November  21,  2000,  in their  entirety  and such
agreements are of no further force and effect.

         As we have  discussed,  in addition to your  resignation  (as described
above)  Viatel  desires  to obtain  (i) the  Stockholders  release of all claims
against Viatel,  (ii) a standstill  agreement as provided herein,  and (iii) the
Stockholders  agreement to maintain the confidentiality of business  information
of Viatel of which you have become  aware  during the course of your  employment
with Viatel and as a member of Parent's  Board of  Directors.  You and the other
Stockholders  have  agreed  to  the  foregoing  as  consideration  for  Viatel's
commitment to provide to you the benefits set forth in paragraph 2 below.  Based
on these considerations, the parties have mutually agreed as follows:

         1.  RESIGNATION.  Effective  as of  January  30,  2001 (the  "Effective
Date"), your resignation as a director,  officer and employee of Parent and as a
director or officer of each of Parent's subsidiaries is accepted.

         2.  PAYMENTS AND  BENEFITS.  Parent will provide you with the following
payments and benefits:

         (a) SEVERANCE  PAYMENTS.  On the Effective Date, Viatel (i) will cancel
your  existing  note to Viatel  in the  amount of  $234,000  (evidencing  a loan
originally   made  by  Destia   Communications,   Inc.   (now  known  as  Viatel
Communications,  Inc.)), and (ii) will pay you two months' salary in addition to
the salary that will be paid pursuant to section 2(b). The amounts  specified in
section 2(a)(ii) will be wired to an account specified by you in writing.


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         (b) SALARY. On the Effective Date, Viatel shall pay you a lump sum cash
payment  equal to the  amount,  if any, of accrued but unpaid base salary due to
you pursuant to the Employment  Agreement and in accordance with Viatel's normal
payroll policies. These amounts shall be wired to an account specified by you in
writing.

         (c) RESTRICTED  STOCK.  On the  Effective  Date,  Viatel will vest  the
32,000  shares of  restricted  stock  granted to you in  December  1999 and will
deliver  stock  certificates   representing  such  shares  to  you  without  any
restricted legend or other impairment of their negotiability.

         (d) STOCK.  On the Effective  Date,  Viatel will deliver to you and the
other Stockholders  stock  certificates of Viatel  representing in the aggregate
3,527,492  shares  (the  "Shares")   without  any  restricted  legend  or  other
impairment  of  their   negotiability   in  exchange  for  your  and  the  other
Stockholders  share certificates in the same aggregate amount. By executing this
Agreement,  Viatel also hereby  represents  that there are no stop  transfers in
place,  and no  such  transfer  orders  that  would  prevent  you  or the  other
Stockholders from selling,  transferring,  pledging,  encumbering,  assigning or
otherwise disposing of the shares will be put in place.

         (e) SOFTWARE  LICENSE/TRADENAME  USE.  Within twenty (20) days from the
Effective Date, Viatel will deliver to you a license agreement pursuant to which
Parent will license to you, on a nonexclusive, irrevocable, perpetual, worldwide
basis, the software developed by Viatel to run its "Presto" prepaid product.  In
addition, within such twenty (20) day period, Parent will also deliver to you an
agreement granting you a similar right to use the "Presto"  tradename/trademark.
Viatel will also  negotiate  in good faith with you an  agreement to sell to you
certain excess hardware and other assets, at a reasonable discounted price, that
are necessary to enable you to operate a business  utilizing the Presto  prepaid
product.  Such agreements will not be subject to the confidentiality  provisions
contained in section 7 herein.  In addition,  until  execution of the agreements
described in this section,  Viatel will continue to operate its existing  Presto
business.

         (f) BENEFIT PLAN  PARTICIPATION.  Viatel shall continue to maintain any
health,  disability,  accidental death and disability,  business travel and life
insurance  coverage and other health and benefit plans and programs to which you
were entitled  immediately prior to the date hereof, and Viatel will continue to
pay the  employer  portion of the  applicable  premium  through  March 31, 2001,
provided, however, that any such benefits or payments shall cease if you receive
similar  benefits  from a subsequent  employer.  On or after such date,  you may
elect  COBRA  coverage  for up to an 18-month  period or such  longer  period as
provided in COBRA, at your own expense. Except as otherwise provided herein, you
will not be  entitled to any  compensation  or  benefits  (or any  reimbursement
therefore) or to  participate in any employee  benefit  programs of Viatel on or
after the date hereof.

         (g) 401(K)  RETIREMENT PLANS. You will be entitled to elect at any time
on or after the Effective  Date, a distribution  of any vested accrued  benefits
under  any  401(k),  pension  or other  type of  retirement  plan  sponsored  or
maintained by Viatel in accordance with the terms of such plans.



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         (h) DATA LINE. You will be entitled to retain one of the T-1 data lines
that are  currently  in  service  at your home for a period of one year from the
Effective Date at no cost to you.

         (i) NO OTHER  COMPENSATION  OR BENEFITS.  Except as otherwise  provided
herein,  you  will not be  entitled  to any  compensation  or  benefits  (or any
reimbursement  therefor) or to  participate in any employee  benefit  program of
Viatel on or after the Effective Date.

         3.  STOCKHOLDERS' RELEASE.

         (a) Except as  otherwise  provided  herein,  in  consideration  of  the
payments and benefits  provided to you under this  Agreement,  you and the other
Stockholders  hereby  release and  discharge  Viatel,  its  affiliates  and with
respect to any actions,  omissions,  matter or events  relating to Viatel or its
affiliates, their respective partners, directors, officers, employees and agents
(collectively,  "Viatel Persons") from and against any and all claims,  actions,
causes of action, damages, liabilities,  promises, debts, compensation,  losses,
obligations,  costs or expenses of any kind or nature, whether known or unknown,
which the Stockholders ever had, now have or hereafter may have, against each or
any of the Viatel Persons , including, but not limited to, those arising from or
related to your employment  relationships with Viatel or the termination of such
employment, any alleged violation of any covenant of good faith and fair dealing
relative  to  your  employment  or any  applicable  labor  or  employer-employee
statute, regulation or ordinance, whether federal, state or local (including, by
way of specificity  but not of limitation,  Title VII of the Civil Rights Act of
1964,  the Americans  with  Disabilities  Act, the Civil Rights Act of 1991, any
amendments to such acts and any and all state and local discrimination laws)(the
"Claims").

         Notwithstanding the foregoing,  the forgoing release shall not apply to
(i) any  payment,  compensations,  benefits  or other  rights  to which  you are
entitled under this Agreement;  (ii) any and all rights to indemnification  from
Viatel (including  expenses)  provided in paragraph 15 herein or otherwise;  and
(iii) any and all Claims  that you and the other  Stockholders  may  hereinafter
have by reason  of your or the other  Stockholders'  status as  stockholders  of
Viatel that are tied to occurrences after the date of this Agreement.

         (b) SPECIFIC  RELEASE OF ADEA CLAIMS.  In consideration of the payments
and  benefits  provided  to you under this  Agreement,  you hereby  release  and
forever discharge the Viatel Persons from any and all claims, actions and causes
of action that you may have as of the date you sign this Agreement arising under
the Federal Age  Discrimination  in Employment Act of 1967, as amended,  and the
applicable rules and regulations  promulgated  thereunder  ("ADEA").  By signing
this Agreement,  you hereby acknowledge and confirm the following:  (i) you were
advised  by Viatel  in  connection  with your  termination  to  consult  with an
attorney  of your  choice  prior to  signing  this  Agreement  and to have  such
attorney  explain  to you  the  terms  of  this  Agreement,  including,  without
limitation,  the terms  relating to your release of claims  arising  under ADEA,
(ii) you have  been  given a period of not fewer  than  twenty-one  (21) days to
consider  the terms of this  Agreement  and to consult with any attorney of your
choosing  with  respect  thereto,  and (iii) you are  providing  the release and
discharge set forth in this Section 3(c) only in exchange for  consideration  in
addition to anything of value to which you are already entitled.



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<PAGE>

         (c) You and the other  Stockholders  agree and understand  that neither
you nor the  other  Stockholders  shall  construe  or treat  any  aspect of this
Agreement as any admission of liability of any Viatel Persons.

         4.  VIATEL RELEASE.

         (a) The Viatel  Persons  jointly  and  severally,  all and  singularly,
release and  discharge you from any and all claims,  actions,  causes of action,
damages, liabilities, promises, debts, compensations, losses, obligations, costs
or expenses of any kind or nature,  whether  known or unknown,  which any of the
Viatel Persons ever had, now have or hereafter may have against you,  including,
but  not  limited  to,  those  arising  from  or  related  to  your   employment
relationships  with Viatel or the  termination of such  employment,  any alleged
violation of any covenant of good faith or fair  dealing,  all common law claims
now existing or hereafter recognized, claims for negligence, breach of fiduciary
duty,   interference   with  actual  or   prospective   contractual   relations,
misrepresentation,  promissory estoppel,  equitable estoppel, breach of contract
or any other  type of claim.  Viatel  does not waive or  release  any rights set
forth in this Agreement.

         (b) It is agreed  and  understood  that the  Viatel  Persons  shall not
construe or treat any aspect of this  Agreement as any admission of  liabilities
on your part.

         5.  STANDSTILL  AGREEMENT. Stockholders' agrees that, until the earlier
of two years after the Effective  Date or until you, the other  Stockholders  or
any other person or affiliate  to which you or the other  Stockholders  transfer
the Shares own in the aggregate less than 3% of Viatel's common stock on a fully
diluted  basis,  neither  you nor  any of  your  affiliates  will,  directly  or
indirectly,  unless in any such case specifically invited in writing to do so by
the board of directors of Parent (i)  individually  or together with one or more
persons  or  entities,  acquire,  offer  to  acquire  or agree  to  acquire,  or
participate in the financing of any acquisition of, beneficial  ownership of any
securities  of Parent  entitled  to vote in the general  election  of  directors
(other  than  securities  distributed  generally  to all  holders  of a class of
securities),  or securities  convertible into or exchangeable or exercisable for
such securities (other than stock options)  (collectively,  "Securities");  (ii)
initiate,  propose,  engage or  otherwise  participate  in the  solicitation  of
stockholders or their proxies for approval of one or more stockholder  proposals
(including,  without limitation, the election of directors, any amendment to the
charter or bylaws,  or any  business  combination  transaction)  with respect to
Parent;  (iii) otherwise act alone or in concert with any other person or entity
to seek to influence or control the management, board of directors,  policies or
affairs of Parent,  or to  solicit,  propose or  encourage  any other  person or
entity with respect to any form of business combination  transaction with Parent
or any  subsidiary  of Parent,  or to solicit,  make or propose or encourage any
other  person or entity with  respect  to, or  announce  an intent to make,  any
tender offer or exchange  offer for any  Securities;  (iv) request Parent or its
board of directors,  officers,  employees or agents,  to amend or waive, or seek
any  modification  to, any  provision  of this section 5; or (v) take any action
designed to, or which can  reasonably be expected to,  require  Parent to make a
public announcement  regarding any of the matters referred to in this section 5.
Notwithstanding the forgoing, the provisions of this section shall be reinstated
during the two year period referred to above, if you or your affiliates increase
share ownership in Parent to a level which is in excess of the 3% threshold.



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<PAGE>

         6.  COOPERATION.  From  and  after  the date  hereof,  you will use all
reasonable  efforts  to  cooperate  with  Viatel and its  respective  directors,
officers,  attorneys and  representatives  in connection with the conduct of any
action,  proceeding,  investigation or litigation involving Viatel,  solely with
respect to events or actions which occurred when you were employed by Viatel. In
such  matters,  you agree to provide,  in response to reasonable  requests:  (i)
truthful testimony and information relating to Destia  Communications,  Inc. and
its  subsidiaries  and  affiliates;  and (ii)  any  documents  relating  to such
entities  that  may  be in  your  possession,  custody,  or  control  (excluding
privileged  communications  between  you  and  attorneys  retained  by  you  and
excluding   matters   and  claims   arising   under  this   Agreement   and  any
indemnification  contemplated  by  section  15),  to Viatel  and its  respective
directors,  officers,  attorneys, experts, or consultants in connection with any
action, suit, proceeding,  investigation, or litigation involving, or instituted
by, or on behalf of, Viatel.

         7.  CONFIDENTIALITY. You acknowledge that you have been provided access
to information regarding Viatel (including,  but not limited to, network design,
sales records,  operational systems, customer lists, costs and specifications of
Viatel products and services,  know-how,  trade secrets,  personnel information,
research  products,  development plans or projects,  investments,  marketing and
other company  strategies and other proprietary  information)  which constitutes
valuable,   special   and  unique   property   of  Viatel   (the   "Confidential
Information").  You agree  that you will not,  at any time or for any  reason or
purpose  whatsoever,  make use of,  divulge or otherwise  disclose,  directly or
indirectly, any of the Confidential Information to any person or use any of such
information without Viatel's express prior written  authorization,  which may be
withheld at Viatel's election;  provided, however, that the foregoing limitation
shall not apply to: (a) the extent as may be  required  by law;  (b) comply with
any  legal  process  or  subpoena  (following  advance  notice to  Viatel),  (c)
statements  in response to authorized  inquiry from a court or  regulatory  body
(following  advance notice to Viatel);  (d)  information  generally known to the
public or in the industries  related to Viatel's  business (other than through a
breach of this Agreement);  and (e) Confidential  Information provided to you in
connection  with the grant of the license and tradename  contemplated by section
2(e) above. Nothing herein shall prevent you from (i) using your general skills,
general  industry  knowledge and  experience,  (ii)  knowledge  gained by you in
connection  with the  development  and  operation  of the  product  and  related
business  being licensed to you as  contemplated  by section 2(e), and (iii) the
use of the license  contemplated by Section 2(e) to compete directly with Viatel
for the provision of telecommunications services.

         8.  NON-SOLICITATION.  For a period of twenty-four (24) months from the
Effective Date, you shall not to solicit,  induce,  counsel, advise or encourage
either  directly  or  indirectly,  any  employee of Viatel who is employed in an
executive,  managerial,  professional or non-clerical administrative capacity to
leave the employment of Viatel. In addition, you agree that you will not, either
directly or indirectly,  contact or attempt to contact any non-employee director
of Parent for any reason or any  employee  director  at other than their  office
number for any reason involving Viatel.

         9.  NON-DISPARAGEMENT. You and Viatel will not at any time, and you and
Viatel  shall use their best efforts to ensure that the other  Stockholders  and
Viatel Persons, respectively,  will not at any time, make any statement, whether
written or oral, or take any other action which is intended, or could reasonably
be expected to,  disparage,  defame or harm the reputation  (or otherwise  cause


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adverse publicity) of the other parties. In no event shall any public statements
be made  about  Viatel or Viatel  Persons  on the one hand and you and the other
Stockholders  on the other,  without the prior written consent of Viatel or you,
respectively.  You and the other  Stockholders also each agree that you will not
assist in any litigation or  investigation  against Viatel or any Viatel Person,
except as required by law.

         10. NON-DISCLOSURE.  You, the other Stockholders and Viatel  agree that
the terms and conditions of this Agreement are  confidential  and that each will
not,  without the express prior written consent of Viatel or you, as applicable,
in any manner publish, publicize,  disclose or otherwise make known or permit or
cause to be known such terms and  conditions  to anyone (other than such party's
prospective or current lenders, financial advisors and legal advisors, who shall
agree  to be bound  by this  paragraph  prior to  disclosure  of the  terms  and
conditions  hereof  to  such  persons),  except  as  required  by  law,  rule or
regulation of any self regulatory organization,  including The Nasdaq, or in any
proceeding  to  enforce  the  terms  of  this  Agreement.   Notwithstanding  the
foregoing, the parties hereto will agree upon a mutually agreeable press release
concerning this Agreement.

         11. NO WAIVER.  This Agreement  constitutes  the entire  agreements and
understandings  among the parties and,  effective  immediately  upon  execution,
supercedes  any and all  prior  agreement  or  understanding,  oral or  written,
between the  parties,  including,  but not limited to your  existing  employment
agreement with Parent and the  Stockholders  Agreement  (except as  specifically
referred to herein).  None of the  provisions of this Agreement can be waived or
modified  except in  writing  signed by the  parties.  This  Agreement  shall be
binding   upon  and  inure  to  the  benefit  of  you  and  your  heirs,   legal
administrators  and  assigns and  Viatel's  successors  and assigns  (whether by
merger, consolidation,  purchase, reorganization, sale of stock, sale of assets,
liquidation or otherwise).  Furthermore,  there are no agreements,  covenants or
understandings   other  than  those  contained   herein  except  as  govern  the
compensation and benefit plans and arrangements set forth herein.

         12. SEVERABILITY.  If any term or  provision of this Agreement shall be
held  invalid or  unenforceable,  the  remaining  terms and  provisions  of this
Agreement shall not be affected thereby and (i) such provision shall be reformed
to the minimum extent  necessary to be valid while  preserving the intent of the
parties as expressed  herein,  or (ii) if such provision  cannot be so reformed,
such provision shall be severed from this Agreement and an equitable  adjustment
shall be made to this  Agreement  (including,  without  limitation,  addition of
necessary  further  provisions  to this  Agreement)  so as to give effect to the
intent as so expressed  and the  benefits so provided.  Neither such holding nor
such   reformation  nor  severance  shall  affect  or  impair  the  legality  or
enforceability of any other provision of this Agreement.

          13. REVOCATION.  You and the other Stockholders  acknowledge and agree
that  by  signing  this  Agreement  each  of you  understand  that  each  of you
voluntarily  waives the right to revoke this Agreement  during the seven (7) day
period following the execution of this Agreement.

         14. RECOVERY  OF CERTAIN  COSTS.  If Viatel  fails  to pay any  amounts
provided  hereunder  or any  party  otherwise  breaches  any  provision  of this
Agreement,  either in whole or in part, then the non-breaching  party (Viatel in
the  case of a  breach  by any  Stockholder  and you in the  event of a beach by
Viatel)  shall be entitled to recover from the other  party,  in addition to the


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recovery of its damages  and/or other relief,  any costs,  including  reasonable
attorneys' fees,  incurred or reasonably expected to be incurred in instituting,
prosecuting  or  defending  any action  arising by reason of such failure or the
breach of this Agreement.

         15. INDEMNIFICATION;  D&O  INSURANCE.  (a)  Viatel  hereby  agrees   to
indemnify  you  against  any and all  expenses  (including  attorney's  fees and
costs),  liabilities,  costs,  damages,  judgments,  fines and  amounts  paid in
settlement,  actually and reasonably hereinafter incurred by you, to the fullest
extent now or hereafter  permitted by law, in  connection  with any  threatened,
pending or  completed  action,  suit or  proceeding,  whether  civil,  criminal,
administrative or investigative, brought or threatened to be brought against you
by reason of your performance as a director,  officer,  employee,  consultant or
agent of Viatel. The rights of indemnification  provided for herein shall not be
deemed exclusive of any other rights to which you may be entitled under Viatel's
By-laws or Certificate of Incorporation,  and shall inure to the benefit of your
heirs,   executors  and  administrators.   Any  expenses  (including  reasonable
attorney's fees and costs) incurred by you in connection with an event for which
indemnification  is  provided  hereunder  shall be paid  promptly  by  Viatel in
advance of the final disposition of such action, suit or proceeding upon receipt
of an  undertaking  by you to  repay  such  amount  if it  shall  ultimately  be
determined  that you are not entitled to be  indemnified by Viatel as authorized
by law.

         (b)  Viatel  hereby  reaffirms  that you shall  continue  to have those
indemnification  rights provided for, and for the periods  specified in, section
5(j) of the Merger Agreement between Parent, Viatel Acquisition Corp. and Destia
Communications, Inc. dated as of August 27, 1999.

         (c) Viatel shall not exclude you from coverage  under any directors and
officers  insurance  policy that it maintains  generally  for some or all of its
directors and officers.

         16. TAX  CONSEQUENCES.  Viatel makes no  representations  or warranties
with respect to the tax  consequences  of any  consideration  provided to you by
Viatel under the terms of this Agreement nor otherwise. You shall be responsible
for all  income  taxes  and  similar  taxes  and  payments  due to  governmental
authorities with respect to all consideration  provided for hereunder which have
not been deducted by Viatel.

         17. GOVERNING  LAW AND  CHOICE OF  FORUM.  PURSUANT  TO TITLE 14 OF THE
GENERAL  OBLIGATIONS LAW OF THE STATE OF NEW YORK, THE PARTIES HERETO AGREE THAT
(1) THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND
INTERPRETED, CONSTRUED, AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF NEW YORK,  EXCEPT TO THE EXTENT THAT FEDERAL LAW MAY GOVERN AND (2) THE
FORUM FOR ANY  DISPUTE  HEREUNDER  SHALL BE IN ANY  FEDERAL  AND/OR  STATE COURT
LOCATED IN NEW YORK  COUNTY,  AND THERE SHALL BE NO DEFENSE TO THE  SELECTION OF
SUCH FORUM BASED ON JURISDICTION, VENUE OR CONVENIENCE. EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES ANY OBJECTION TO SUCH JURISDICTION OR INCONVENIENT FORUM.

         PLEASE READ THIS AGREEMENT CAREFULLY. BY EXECUTING THIS AGREEMENT, EACH
OF THE STOCKHOLDERS WILL HAVE WAIVED ANY RIGHT IT MAY HAVE TO BRING A LAWSUIT OR


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MAKE ANY LEGAL CLAIM,  KNOWN OR UNKNOWN,  AGAINST  VIATEL OR ANY VIATEL  PERSONS
BASED ON ANY  ACTIONS  TAKEN BY VIATEL OR ANY  VIATEL  PERSONS  ARISING  FROM OR
RELATED TO YOUR EMPLOYMENT WITH VIATEL OR THE TERMINATION OF SUCH EMPLOYMENT, UP
TO THE DATE OF THE  EXECUTION OF THIS  AGREEMENT.  WE RECOMMEND  THAT YOU RETAIN
LEGAL COUNSEL TO ADVISE YOU WITH RESPECT TO THE TERMS OF THIS  AGREEMENT AND THE
TERMINATION OF YOUR EMPLOYMENT WITH VIATEL.

          18. BINDING EFFECT.  The parties understand that this Agreement is not
binding  upon the parties  until each  accepts  it,  which  acceptance  is to be
evidenced by their respective execution on the signature page hereof.

          19.  NOTICES.  All  notices,  requests  and  demands  to or  upon  the
respective  parties  must be in writing and may be served by personal  delivery,
facsimile  transmission or certified mail,  return receipt  requested.  All such
notices,  requests  and demands  shall be deemed to be made upon  receipt to any
Stockholder:  at the address set forth above, and to Viatel at 685 Third Avenue,
New York, New York 10017.











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The signature of the parties below signifies  their voluntary  acceptance of the
terms hereof. Please execute below and return one copy of this Agreement.

Sincerely,

VIATEL, INC.


By:        /s/ Michael J. Mahoney
   ------------------------------------------
         Michael J. Mahoney
         Chairman and Chief Executive Officer


VIATEL ACQUISITION CORP.


By:        /s/ Michael J. Mahoney
   ------------------------------------------
         Michael J. Mahoney
         President


VIATEL COMMUNICATIONS, INC.
 (FORMERLY KNOWN AS DESTIA COMMUNICATIONS, INC.)


By:        /s/ Michael J. Mahoney
   ------------------------------------------
         Michael J. Mahoney
         President


Accepted and Agreed:


/s/ Alfred West
---------------------------------------------
Alfred West



/s/ Alfred West
---------------------------------------------
AT ECON LTD. PARTNERSHIP



/s/ Alfred West
---------------------------------------------
AT ECON LTD. PARTNERSHIP 2