Telesat Statement on Creditor Litigation

Executive Summary

• Creditors holding portions of Telesat’s legacy GEO debt have filed lawsuits in New York and Ontario challenging the September 2025 equity distribution of the Telesat Lightspeed business.
• The lawsuits were initiated by distressed‑debt hedge funds and Telesat asserts they are without merit, stating the distribution complied with all relevant debt agreements and applicable law.
• Telesat has announced it will vigorously defend itself while reaffirming its commitment to customers and the continued advancement of the Lightspeed program.

Key Details

• Lawsuits filed in both New York (U.S.) and Ontario (Canada) by a group of distressed‑debt hedge funds.
• The legal dispute concerns the equity distribution that occurred in September 2025 for the Telesat Lightspeed business.
• Telesat claims the equity distribution followed a “robust governance process” and was executed in strict accordance with debt agreements and applicable law.
• Company statement: “The lawsuits … are without merit… Telesat intends to defend itself vigorously.”
• No financial impact or settlement amount disclosed at this time.
• Telesat reiterates its commitment to supporting customers, advancing the Lightspeed LEO satellite network, and creating long‑term value for stakeholders.

Notable Quotes

“The lawsuits … are without merit. The equity distribution at issue followed a robust governance process and was accomplished in strict accordance with relevant debt agreements and applicable law.” – Telesat spokesperson

Materiality: Material – Negative (potentially adverse impact on shareholder value due to litigation risk).