Transferring students to a public school

Dear PAO,

My children were previously enrolled in a private school, but due to the financial impact of the recent pandemic and the continued decline of our business, we were forced to transfer them to a public school. We even had to write a promissory note to the private school because we couldn't settle the remaining tuition fees. When we requested for the issuance of our children's report cards to complete their transfer, I was surprised to be informed that the school would withhold these documents until the outstanding fees were fully paid. Does the school have the power to withhold my children's transfer credentials?