Management maintained that the rescue operation can still proceed despite the setback.
"The mission remains active and we continue to believe that with these changes, LINK has a viable path to rendezvous with Swift," the company stated.
NASA selected Katalyst Space in September under a $30 million contract to rendezvous with the Neil Gehrels Swift Observatory.
The gamma-ray telescope currently orbits at roughly 350 kilometers altitude and is expected to decay to a critical 300-kilometer threshold by October.
Without intervention, the observatory risks an uncontrolled reentry late this year or early next year.
Engineers are currently attempting to update the spacecraft guidance systems to restore control ahead of the planned rendezvous.
