> Who is responsible for covering damages caused by this satellite?

Space Law is a developing and mostly uncodified field of International Law, but it is generally considered very uncontroversial that the nation(s)/cosporation(s) responsible for causing the satellite to go out of control should foot the bill for any cleanup/damages. It could be the entity that made a faulty satellite or the entity that failed to launch it to the proper orbit or even an entity that created the debris that caused another satellite to lose orbit.