Potential energy of the satellite in its orbit =−GMmr
⇒K.E.=|U|2=GMm2r where m is mass of satellite, M the mass of the earth and r the orbital radius.
Total energy =K.E.+P.E.
=GMm2r−GMmr=−GMm2r
For two satellites E=−GMmr
Let v′ be the velocity after collision.
By conservation of momentum
m→v1+m→v2=0=(m+m)v′⇒v′=0
The wreckage of mass (2m) has no kinetic energy, but it has only potential energy. So, energy after collision =−GM(2m)r
Therefore, the wreckage falls down under gravity.