U.S. bankruptcy claims trading slows in May

* Number of claims traded falls to 701 from 892

* Value of claims traded dips to $2.1 bln from $2.2 bln

WILMINGTON, Del., June 20 (Reuters) - The volume of U.S. bankruptcy claims traded in May fell from April, but the value of trades remained almost steady, thanks to several large trades involving Mesa Air Group Inc, according to a report on Monday.

The total number of claims fell to 701 from 892 in April while the value of claims traded dipped to $2.1 billion from $2.2 billion, according to SecondMarket, which runs a bankruptcy claims trading marketplace.

Creditors such as landlords and suppliers can trade or sell their claims against bankrupt companies. The seller gets immediate cash, while the buyer, often a hedge fund investor, hopes to make a handsome return by betting on the timing and ultimate payout in the bankruptcy.

Trading has slowed in the past year as the scores of large companies that failed during the U.S. recession have restructured and exited bankruptcy.

Lehman Brothers Holdings Inc LEHMQ.PK was the biggest bankruptcy in U.S. history and claims against the former investment bank often make up the bulk of monthly activity. In May, 239 Lehman Brothers claims were traded, worth $1.6 billion.

Other actively traded cases included hotel chain Innkeepers USA Trust (INKPQ.PK), grocer Great Atlantic & Pacific Tea CoGAPTQ.PK, hotel owner MSR Resort Golf Course LLC and book retailer Borders Group Inc BGPIQ.PK.

The bankruptcies with the most claims traded by value included airline Mesa, developer Fiddler's Creek LLC, auto parts maker Plastech Engineered Products Inc and publisher Tribune Co. (Reporting by Tom Hals, editing by Gerald E. McCormick)