The deal will be completed if a court gives the go-ahead today.
The Co-operative said on Tuesday that 99.9% of creditors who voted had approved the plan, which will see bondholders end up with a 70% stake while the Co-op Group's ownership of the bank will fall to 30%.
In all 617 of the bank's 625 creditors gave their backing to the scheme. There had to be backing from at least 75% from the arrangement to go through.
The deal effectively cedes control of the bank to hedge funds who came onto the creditor register after the scale of Co-operative's capital hole was revealed.
This came after the collapse of its attempt to buy 632 branches, including the whole of Lloyds TSB Scotland, from Lloyds Banking Group.
Co-op has also been hit by the arrest of former bank chairman Paul Flowers, who was in charge when the bank ran into trouble, as part of an investigation into the supply of illegal drugs.
"The court hearing for sanctioning the scheme is scheduled for December 18, 2013. Sanction of the scheme on December 18, 2013 should enable The Co-operative Group and The Co-operative Bank to successfully complete the Liability Management Exercise on December 20, 2013," the group told investors yesterday.
Last week mutually owned Co-op Group revealed that former Treasury minister Lord Myners has been appointed to its board.
The former chairman of Marks & Spencer will chair a review of the 160-year-old group's governance and democracy.
Co-op is seeking to appoint another two non-executive directors as it shores up governance at the group.
Chancellor of the Exchequer George Osborne has ordered an independent inquiry into the bank and it faces probable probes by the two financial regulators.
Separately the Co-op has commissioned an independent review, headed by Sir Christopher Kelly, into what went on at the bank.
That is expected to report around the same time as Lord Myners' governance review in time for May's annual meeting of the group.
Despite the problems at its banking arm, Co-operative has continued to grow its grocery business.
Earlier this week it announced it is opening five new stores across Scotland.
The retailer has around 400 stores across Scotland
The Co-operative has around 500,000 members in Scotland.
Last year the group said in addition to its food stores it had 123 funeral homes, 66 pharmacies, 11,500 staff and 100,000 general insurance customers.