Wood-decomposing fungi colonizing dead or dying tree trunks and stumps utilize cellulose while modifying the hemicellulose and lignin constituents cause either brown-rot or more commonly, white-rot via the utilization of hemicellulose and cellulose during the degradation of lignin. White Rot fungi (WRF) produce different types of enzymes that are characterized by different or specialized group of Peroxidases. Versatile Peroxidase (syn. Hybrid peroxidase, manganese- lignin peroxidase) is a new ligninolytic enzyme, combining catalytic properties of manganese peroxidase, oxidation of Mn (II), lignin peroxidase (Mn-independent oxidation of non-phenol aromatic compounds) and plant peroxidase (oxidation of hydroquinone and substituted phenols). The ligninolytic enzymes of white-rot fungi have broad substrate specificity and have been implicated in the transformation and mineralization of organopollutants with structural similarities to lignin.