A Michigan judge has ordered Detroit to withdraw the city’s bankruptcy petition because it could cut the pensions of retired public employees, thereby violating the state’s constitution. Michigan’s attorney general quickly appealed the ruling after it came down on Friday. Detroit last week became the largest city in the United States to file for bankruptcy, with unpayable debts estimated at $18 billion. About half of those debts are in unfunded pensions and benefits to thousands of public workers and retirees. Speaking to Chris Wallace on Fox News Sunday, Emergency Manager Kevyn Orr said pension cuts are inevitable.

Kevyn Orr: “We’re going to have a dialogue with the pension funds about what we can do. And there are two different funds — police and fire and general services. And they may have different levels of funding. And all we’re talking about in this restructuring is the unfunded component of those pension funds. I want to be clear, the pensioners…”

Chris Wallace: “But that’s billions of dollars.”

Kevyn Orr: “It’s a significant sum of money. Make no mistake about it. And there are going to have to be concessions. Concessions may be different for each fund, and they’re going to be focused on the unfunded portion. But they will have some component of their pensions.”

Chris Wallace: “But you are saying that pensioners who worked for the city for decades are not going to get the benefits they thought they were going to get.”

Kevyn Orr: “There are going to be some adjustments. There are probably going to be need to be some adjustments.”

Bankruptcy proceedings could begin as early as this week. If approved in court, Detroit’s bankruptcy would force creditors to enter into negotiations on resolving its debt. Michigan’s Republican Gov. Rick Snyder has downplayed the prospect of a bailout from Washington, saying he would not seek the federal government’s help.