Reorganization of Insolvent on Iranian Laws and UNSITRAL Legislative Guide on Insolvency Law

With adjudication of bankruptcy, there are two different solutions for the parties, the first forward process of Liquidation and end of insolvency, in which case the creditors in proportion of credits and the remaining assets of insolvent obtaining debts, the second solution is entering into a reorganization agreement or leniency contract of Trade Law of Iran by the requisite majority of creditors committee agreement, allow insolvent the resumption of commercial activities without restriction or interference by legislators or even creditors, if agreed and hope of revival be obtained. In this article explaining the effects of this kind of agreement in both legal approaches with mention the common and different points between them and precautionary agreement which is called to leniency contract and finally cases of cancellation and nullification of reorganization agreement has been studied.