Saving companies through redistributions of property rights demands expertise. To obtain this expertise frequently upsets the professional division of labor. New opportunities and threats arise for professionals. These not only affect the allocation of work to professionals, but that allocation itself ultimately influences the exercise of property rights. Significant changes in the distribution of property rights therefore precipitate struggles over the demarcation of occupational terrains to produce a complex reconstruction of jurisdictional rights--a redrawing of boundaries and allocations of work.
The significance of jurisdictional rights and the importance of the agents that exercise them rise in proportion to three factors. First, the more kinds of property in which it is possible to obtain rights, and the more complex the portfolios of property rights owned by a particular creditor or debtor-company, the more sophistication will be required to handle them, and the more creativity will be necessary to imagine new combinations, trade-offs, and bargains in the adjustment of rights that accompanies company reorganization. Second, when forms of security are few and simple, it does not require advanced competencies to handle them. As forms of security multiply, and as they interrelate to each other in increasingly complex ways, the greater the need for competent experts who can authoritatively create, adjust, and execute them. And, third, just as multi-party games are more complex than two-party games, so, too, the multilateral bargaining that results from bankruptcies is likely to be proportionately greater around reorganizations with companies that themselves have complex corporate structures, debt structure, and credit relationships.
To the extent that all three--forms of property, forms of security, and multilateral bargaining--have increased in scope and complexity over the past decades, the necessity for commensurate expertise rises correspondingly. Of course, professionals do not simply arise in response to changes in property, security, and bargaining independent of professionals themselves. Jurisdictions increase as much from professionals' own innovative exertions as they do from changes outside their control.