Telesat Unit Seeks Dismissal of US Suit Involving Asset Transfer

A unit of Telesat Canada has filed two motions in New York federal court seeking to dismiss a lawsuit stemming from a 2025 asset transfer by the satellite company on jurisdictional grounds.

The firm in September transferred low-earth-orbit assets out of a collateral package backing its notes and loans. That prompted bondholders in January to file lawsuits in the Ontario Superior Court and New York state court. They allege the transfers moved valuable assets out of their reach and demand their reversal.

Telesat LEO CanHold Corp., an affiliate of Telesat Canada, received a 62% stake in the Lightspeed unit. CanHold ...