One of Wall Street's closest allies when it comes to spyware firm NSO Group, Jefferies Financial Group Inc., is now resigning from a key administrative role regarding the Israeli company's debt.

No Reason Given for the Bank's Decision

According to the story by Bloomberg, the news came from a person familiar with the matter, an investment banker, who privately notified the company's lenders of its intention to step down as an administrative agent. To add, this is a role in which Jefferies handles debt payments for the company and other clerical tasks.

The informant reportedly requested to remain anonymous amidst the report. Besides, the bank didn't give a reason for its decision in the notification.

No Immediate Response by Jefferies and the NSO Group

Representatives for both Jefferies and the NSO didn't immediately respond to comment requests. To add, the decision by Jefferies to leave the role actually comes at a very important time for the NSO.

As of the moment, the NSO is in danger of defaulting on its very own debt while fighting against the allegations that governments utilized its Pegasus phone-hacking service in order to spy on certain individuals. US Commerce Department also stated that it placed the company on its famous export blacklist.

Apple Sued NSO for Spyware

In the meanwhile, Apple actually sued the NSO and is now seeking to bar the spyware firm from utilizing its services and products. To add, the company has firmly denied the accusations.

As per the company, they are stating that they are selling the tech to law enforcement and government agencies to prevent crime and terrorism but have ended its contracts with clients abusing it.

The Decision to Shut Down Pegasus

The company noted that it has started exploring options, including shutting down Pegasus for good and selling the whole company to regain its footing. As per the recent notice, Jefferies' resignation could come into effect in 30 days or less should a replacement be found sooner.

The decision by the bank, which could still be provoked, doesn't ultimately prevent the firm from doing business with the NSO. To add, Jefferies was the lead underwriter and Credit Suisse Group AG on about $500 million of loans issued in 2019.

How the Decision Could Affect the Loan

The loan was issued in 2019 to finance a buyout of the company, which was orchestrated by Novalpina Capital, a management and European private equity firm.

As per an article by Al Jazeera, the NSO Group was exploring the shut down of its Pegasus spyware unit with the added pressure of the company having to pay back its $450 million loans. To add, the shutdown of Pegasus could leave NSO less value due to the unit accounting for half of the NSO's total revenue.

This article is owned by Tech Times

Written by Urian B.