Canada-based satellite operator Telesat has confirmed that certain creditors holding portions of the company’s legacy GEO (Geostationary Earth Orbit) debt have filed lawsuits in both New York and Ontario, Canada regarding the equity distribution in September 2025 of the Telesat Lightspeed business.

The lawsuits, filed at the direction of a group of distressed debt hedge funds, are without merit, said Telesat.

“The equity distribution at issue followed a robust governance process and was accomplished in strict accordance with relevant debt agreements and applicable law. Telesat intends to defend itself vigorously,” the company added.

“Telesat and its stakeholders are firmly committed to supporting the company’s customers, advancing the Telesat Lightspeed programme, and creating long-term value,” stated Telesat.

The creditors are suing Telesat and alleging that the company has illegally moved the firm’s “crown jewel asset” out of their reach ahead of critical debt-repayment deadlines. Telesat has $1.7 billion (€1.4bn) of debt maturing in December 2026, with nearly $450 million more coming due in 2027, according to a lawsuit filed January 21st by a group of the company’s creditors in the Supreme Court of the State of New York with a matching writ lodged into the Ontario Superior Court.

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Categories: Articles, Business, Satellite

Tags: canada, lightspeed, telesat