According to an informed source, one of the closest allies of the Israeli spyware maker NSO Group on Wall Street, Jefferies Financials Inc, has resigned from a Key administrative responsibility for the company’s debt.
As per Bloomberg News, the investment bank has indicated to other lenders its decision to come out of its role as an administrative agent. Jefferies plays the role of handling the payments of debts of NSO Group and other clerical jobs.
Jefferies Financials did not give any reason to notify the lenders. A representative of the Investment bank declined to comment, while NSO did not respond immediately to the request.
The decision for Jefferies to leave NSO comes at a time when the spyware maker is on the verge of committing default on its debt repayment. This follows after NSO’s phone-hacking service, NSO Group, has been battling accusations that governments used Pegasus to spy on dissidents, journalists, and human rights activists.
Last month, the Commerce department U.S. had said that it placed NSO on its export blacklist. Apple Inc. also sued NSO barring its Pegasus from accessing its products and services.
Exploring Options
NSO has denied the allegations saying that it only sells technology to governments and enforcement agencies to curb terrorism and crime. It has also ended its contracts with those clients who had abused its use. NSO is contemplating options to close down its Pegasus unit and sell the entire company to regain its credibility, as per a Bloomberg News report this week.
According to the notice by Jefferies Financials Inc., their resignation has 30 days’ notice period and could be less if they found a replacement earlier.
The decision of Jefferies can still be revoked apart from the firm continuing doing business with NSO.
In 2019, Novalpina Capital, a European Private Equity firm, and NSO had taken the services of Credit Suisse Group AG, and Jefferies Financials Inc. was lead underwriters to a $500 million loan to finance the company’s buyout.
