Midland Loan Services says Innkeepers' bankruptcy plan unfair

July 30 (Reuters) - Midland Loan Services Inc said bankrupt hotel chain Innkeepers USA Trust's (INKPQ.PK) reorganization plan gives preference to Lehman Brothers Holdings Inc (LEHMQ.PK) over other secured creditors.

In court papers filed on Friday, Midland said Innkeepers plans to repay an $825 million secured claim owed to Midland with a note valued at no more than $550 million.

The loan is secured by 45 hotels owned by Innkeepers and was transferred to Midland earlier this year.

Midland said the restructuring will lead it to book a loss of $300 million while Apollo Investment Corp (AINV.O), which currently owns Innkeepers, will get a substantial portion of the new equity in the reorganized company.

Under the restructuring plan, Lehman will get 100 percent equity in the reorganized Innkeepers, plus full satisfaction of a $238 million secured claim.

However, Lehman, also bankrupt, on Tuesday agreed to sell 50 percent of the new equity in Innkeepers to Apollo for at least $107.5 million. [ID:nSGE66R0KE]

Innkeepers filed for protection from creditors earlier this month.

The case is In re Innkeepers USA Trust, US Bankruptcy Court, Southern District of New York, No. 10-13800. (Reporting by Santosh Nadgir in Bangalore; Editing by Unnikrishnan Nair)