The group will be led by Lee Mackson, a partner in the firm'sMiami office. Mackson tells GlobeSt.com that the firm anticipatesmost activity stemming from the slowdown in the residential market,where oversupply of product is leading to loan defaults,bankruptcies and other problems. Some developers are experiencingproblems because buyers walked away from deposits on high-endresidential investments. "The developers have the deposits but theydon't have enough to pay off loans," Mackson says. "We're seeingthe tip of the iceberg with this situation, but we anticipate thatit will get worse."

Shutts & Bowen has offices in six Florida locations as wellas in London and Amsterdam. Other members of the new group willinclude partners Don Wasil, Peter Levitt and Bob Fracasso in Miami;Peter Shapiro in Fort Lauderdale; Art Menor in West Palm Beach; RobSoriano in Tampa and Andrew Brumby and Michael Gore in Orlando.

"The collapse of the subprime mortgage market is creating aripple effect on other sectors of the US economy," Mackson says."Foreclosure rates and mortgage-fraud claims are rising and excessliquidity in the capital markets has been keeping the borderlinecompanies afloat. As these stresses mount, we anticipate thatcompanies in a wide range of industries will be seeking our adviceon restructuring loans, reorganizing business ventures andaddressing complex contract disputes."