CHICAGO — Detroit will head to the market Thursday with a long-stalled $123 million local government loan program revenue bond deal, a borrowing that chief financial officer Jack Martin said will help the city avoid a cash crisis like the one that loomed just two months ago.

The Michigan Finance Authority will issue the bonds on the city’s behalf. The single-A bonds feature the pledge of a piece of the city’s state aid from Michigan, as well as a so-called lockbox structure crafted in part to improve bondholder protection if the city files for Chapter 9 bankruptcy protection.

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