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.
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Engineers are currently attempting to update the spacecraft guidance systems to restore control ahead of the planned rendezvous.