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                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 8-K

                Current Report Pursuant to Section 13 or 15(d) of
                           The Securities Act of 1934


         Date of Report (Date of earliest event reported): June 1, 2001



                            Global TeleSystems, Inc.
             (Exact name of Registrant as specified in its charter)


  Delaware                       0-23717                         94-3068423
  ------------                  -----------                   -----------------
(State or other                (Commission                    (I.R.S. Employer
jurisdiction of                File Number)                  Identification No.)
incorporation)


                              4121 Wilson Boulevard
                                    7th Floor
                               Arlington, VA 22203
          (Address of principal executive offices, including zip code)


                                 (703) 258-3401
              (Registrant's telephone number, including area code)

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ITEM 5.  OTHER EVENTS

         On June 1, 2001, Global TeleSystems, Inc. (the "Company") announced
plans to initiate discussions with the holders of the Company's public debt and
preferred securities regarding a recapitalization of the Company and Global
TeleSystems Europe B.V., its subsidiary ("GTS Europe").

         In view of the impending discussions GTS Europe has decided not to pay
cash interest payments due on June 1, 2001 of  Euro15.1 million on the GTS
Europe B.V. 11% Euro275 million Senior Notes due 2009 and of Euro11.8 million
on its GTS Europe B.V. 10.5% Euro225 million Senior Notes due 2006. These
nonpayments will not constitute events of default under the indentures
governing these notes unless interest is not paid by July 1, 2001. The press
release concerning these matters is included as an exhibit to this report.

ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

          (c)     Exhibits

99.1     Press release issued by Global TeleSystems, Inc.
         on June 1, 2001.


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                                   SIGNATURES

                  Pursuant to the requirements of the Securities Exchange Act of
1934, Global TeleSystems, Inc. has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.


                                       GLOBAL TELESYSTEMS, INC.


Date:    June 1, 2001                  By:  /s/ Grier C. Raclin
                                            -------------------
                                       Name:  Grier C. Raclin
                                       Title: Executive Vice President; Chief
                                       Administrative Officer; General Counsel;
                                       and Secretary
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                                  EXHIBIT INDEX

Exhibit
   No.            Description
- --------          --------------

99.1              Press release issued by Global TeleSystems, Inc. on
                  June 1, 2001.