UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
—————————— FORM 8-K
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	———————————— October 20, 2011
	December 22, 2011
Date of Report (date of earliest event reported)
—————————— AVISTAR COMMUNICATIONS CORPORATION
AVISTAR COMMUNICATIONS CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware		000-31121	88-0463156
(State or other jurisdiction of incorporation)		(Commission File Number)	(I.R.S. Employer Identification Number)
	1875 S. Grant Street, 10th Floor, San Mateo, California 94402
(Address of principal executive offices, including zip code)
	——————————— (650) 525-3300
	(650) 525-3300
(Registrant's telephone number, including area code)
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

~~Item~~Section ~~2.02~~1 ~~Results~~- ofRegistrant’s ~~Operations~~Business and ~~Financial Condition.~~Operations

OnItem ~~October~~1.01 ~~20,~~Entry ~~2011,~~into ~~Avistar Communications Corporation (“Avistar”) issued~~ a ~~press~~Material ~~release~~Definitive ~~discussing its financial performance for the third quarter ended September 30, 2011. A copy of the press release is attached hereto as Exhibit 99.1.~~Agreement

~~The~~Effective ~~attached~~as ~~press~~of ~~release~~December ~~includes~~22, a2011, ~~discussion~~Avistar ofCommunications ~~“adjusted~~Corporation ~~EBITDA~~(“Avistar”), aas ~~non-GAAP~~borrower, ~~financial~~entered ~~measure~~into ~~that~~the ~~Avistar~~following ~~defines~~agreements aswith ~~earnings~~JP ~~before~~Morgan ~~net~~Chase ~~interest~~Bank, ~~income~~N.A. ~~taxes,~~(the ~~depreciation~~“Bank”), ~~and amortization,~~ as ~~further~~lender: ~~adjusted~~(i) ~~for~~the ~~stock-based~~third ~~compensation.~~amended ~~Avistar believe adjusted EBITDA is relevant~~ and ~~useful~~restated ~~information~~revolving tocredit ~~its~~promissory ~~investors~~note asagreement, ~~this~~(ii) ~~measure~~the isthird anamended ~~integral~~and ~~part~~restated ofcollateral ~~Avistar’s~~agreement, ~~internal~~and ~~management~~(iii) ~~reporting~~the ~~and~~fifth ~~planning~~amended ~~process~~ and isrestated asecurity ~~primary~~agreement. ~~measure~~The ~~used~~amended byagreements ~~Avistar~~related ~~management~~ to ~~evaluate~~ the ~~operating~~renewal ~~performance~~ of ~~Avistar’s~~a ~~business.~~line ~~This~~of ~~non-GAAP~~credit ~~measure should be considered in addition to results prepared in accordance~~ with ~~GAAP,~~the ~~but should not be considered a substitute for~~Bank, orwhich ~~superior to, GAAP results. In addition,~~ Avistar’s ~~definition of adjusted EBITDA~~ may ~~not~~draw beupon ~~comparable~~during to the ~~definitions~~term ~~as reported by other companies. A reconciliation~~ of ~~this~~the ~~non-GAAP~~note ~~measure~~ to ~~GAAP~~fund ~~can~~its bebusiness ~~found~~operations ~~following~~ (the ~~text~~“Credit ~~of the press release~~Facility”).

~~The~~Also, ~~information~~effective inas ~~this Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes~~ of ~~Section~~December 1822, of2011, ~~the~~Gerald ~~Securities~~J. ~~Exchange~~Burnett, ~~Act~~Chairman of ~~1934~~Avistar, asand ~~amended,~~The ~~(the~~Gerald ~~“Exchange~~J. ~~Act”)~~Burnett orand ~~otherwise~~Marjorie ~~subject~~J. toBurnett ~~the~~Revocable ~~liabilities~~Trust ofentered ~~that~~into ~~section,~~the ~~nor~~fourth ~~shall~~amended itand berestated ~~deemed~~guaranty ~~incorporated~~with ~~by reference in any filing under~~ the ~~Securities~~Bank ~~Act~~pledging ofpersonal ~~1933,~~assets as ~~amended,~~collateral orfor the ~~Exchange~~Credit ~~Act, regardless of any general incorporation language in such filing~~Facility.

~~Item~~The 9amended agreements extended the maturity date of the note from December 22, 2011 to December 22, 2012 for a line of credit up to $8.~~01 Financial~~0 ~~Statements~~million from December 22, 2011 through and ~~Exhibits~~including March 13, 2012, and then reduced the line of credit to $6.0 million from and after March 14, 2012 through the maturity date on December 22, 2012. As of December 22, 2011, the total principal amount borrowed by Avistar under the Credit Facility was $8.0 million.

~~(d) Exhibits~~The Credit Facility is subject to customary terms and conditions, including several reporting and non-financial covenants. As security for the payment of its obligations under the Credit Facility, Avistar granted JPMorgan a security interest in and right of setoff against substantially all of the assets of Avistar, tangible and intangible. The repayment of funds borrowed and interest accrued under the Credit Facility is also personally guaranteed by Gerald J. Burnett, Chairman of Avistar, and The Gerald J. Burnett and Marjorie J. Burnett Revocable Trust, who has pledged personal assets as collateral for the Credit Facility.

Exhibit No.	Description
99.1	Press Release of Avistar Communications Corporation dated October 20, 2011.

The foregoing description of the Credit Facility as amended, does not purport to be complete and is qualified in its entirety by the terms and conditions of the amended and restated revolving credit promissory note, the amended and restated collateral agreement, the amended and restated security agreement, the amended and restated guaranty, and subsequent amendments and restatements, which were filed as exhibits to Avistar’s Annual Report on Form 10-K for the years ended December 31, 2006 to 2010, and Quarterly Report on Form 10-Q for quarters ended March 31 and September 30, 2011, and the amendments thereto which are expected to be filed as exhibits to Avistar’s Annual Report on Form 10-K for the year ending December 31, 2011.

Section 2 – Financial Information

Item 2.01. Completion of Acquisition or Disposition of Assets

In connection with the Credit Facility described above, as security for the payment of Avistar’s obligations under the Credit Facility, Avistar pledged, assigned and granted to the Bank a security interest in, and right of setoff against, substantially all of the assets of Avistar, tangible and intangible. Item 1.01 of this Report on Form 8-K is incorporated by reference into this Item 2.01.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

Item 1.01 of this Report on Form 8-K describes Avistar’s extension of a 12 month revolving credit facility agreement and is incorporated by reference into this Item 2.03.

SIGNATURES

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

	AVISTAR COMMUNICATIONS CORPORATION
Date: October 20, 2011	By:	/s/Elias MurrayMetzger
Date: December 23, 2011	By:	/s/ Elias MurrayMetzger
		Elias MurrayMetzger
		Chief Financial Officer, Chief Administrative Officer and Corporate Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of Avistar Communications Corporation dated October 20, 2011.

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