A federal bankruptcy judge has approved Calpine Corp.’s reorganization plan, setting the stage for the company to emerge from bankruptcy by Feb. 7, according to the Associated Press. That date is the deadline for the company and its creditors to close on its $7.6 billion exit financing arrangement.

Under the plan, which calls for unsecured creditors to get more than 90 percent on their claims, Calpine would be worth $18.95 billion after it exits from Chapter 11, according to the report.

Shareholders—who usually collect nothing from bankruptcy reorganizations—would receive warrants to buy up to 10 percent of shares in the reorganized company.

Earlier in the week, the company agreed to a deal with its unsecured-creditor and shareholder committees to set a value for the company and give the shareholders a recovery, the AP noted. Shareholders had opposed the plan, arguing the company would be worth about $24.4 billion.

By agreeing on the $18.95 billion valuation, the company and shareholders were able to avoid delaying the company’s emergence from bankruptcy. At the same time, the unsecured creditors agreed to eliminate a small part of their recovery so that the shareholders could get their warrants.

Also this week, Calpine, which filed for bankruptcy in December 2005, cut its exit financing package by $400 million to $7.6 billion as a result of a deal with its lenders, according to a separate AP report.