Dallas County Schools has filed paperwork confirming it has defaulted on millions of dollars in debt payments that were due this week.
In a securities filing Friday the troubled school bus agency says it is committed to finding alternative solutions to meet its financial obligations.
DCS says it will consider its options and provide an update no later than June 16.
An NBC 5 investigation over the last nine months uncovered financial mismanagement at the agency, including millions spent on a risky business venture that put the agency millions in debt.
The Texas Legislature passed a bill that would have Dallas County voters decide on the November ballot whether to keep DCS open.
That bill is currently on the governor's desk.