SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
SCHEDULE 13G
(Rule 13d-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULES 13d-1(b), (c) AND (d) AND AMENDMENTS THERETO FILED
PURSUANT TO 13d-2(b)
(Amendment No. 1)*
KapStone Paper and Packaging Corporation
(Name of Issuer)
Common Stock, $0.0001 par value
(Title of Class of Securities)
48562P103
(CUSIP Number)
December 31, 2008
(Date of event which requires filing of this statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule 13G is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
(Page 1 of 11 Pages)
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*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934 ("Act") or otherwise subject to the liabilities of that section of the
Act but shall be subject to all other provisions of the Act (however, see the
Notes).
CUSIP No. 48562P103 13G/A Page 2 of 11 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE
PERSONS (ENTITIES ONLY)
Gruss Asset Management, L.P.
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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(5) SOLE VOTING POWER
NUMBER OF -0-
--------------------------------------------------------------
SHARES
(6) SHARED VOTING POWER
BENEFICIALLY Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
OWNED BY --------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
-0-
REPORTING --------------------------------------------------------------
PERSON WITH (8) SHARED DISPOSITIVE POWER
Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
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(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
1.8%
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(12) TYPE OF REPORTING PERSON **
PN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 48562P103 13G/A Page 3 of 11 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE
PERSONS (ENTITIES ONLY)
Gruss Co., LLC
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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(5) SOLE VOTING POWER
NUMBER OF -0-
--------------------------------------------------------------
SHARES
(6) SHARED VOTING POWER
BENEFICIALLY Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
OWNED BY --------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
-0-
REPORTING --------------------------------------------------------------
PERSON WITH (8) SHARED DISPOSITIVE POWER
Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
-----------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
-----------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
1.8%
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(12) TYPE OF REPORTING PERSON **
00
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 48562P103 13G/A Page 4 of 11 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE
PERSONS (ENTITIES ONLY)
Pegasus Equity Partners II
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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(5) SOLE VOTING POWER
NUMBER OF -0-
--------------------------------------------------------------
SHARES
(6) SHARED VOTING POWER
BENEFICIALLY Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
OWNED BY --------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
-0-
REPORTING --------------------------------------------------------------
PERSON WITH (8) SHARED DISPOSITIVE POWER
Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
-----------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
-----------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
1.8%
-----------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
PN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 48562P103 13G/A Page 5 of 11 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE
PERSONS (ENTITIES ONLY)
Trust FBO Martin D. Gruss dated April 25, 1988
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Florida
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(5) SOLE VOTING POWER
NUMBER OF -0-
--------------------------------------------------------------
SHARES
(6) SHARED VOTING POWER
BENEFICIALLY Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
OWNED BY --------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
-0-
REPORTING --------------------------------------------------------------
PERSON WITH (8) SHARED DISPOSITIVE POWER
Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
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(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
-----------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
-----------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
1.8%
-----------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
OO
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 48562P103 13G/A Page 6 of 11 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE
PERSONS (ENTITIES ONLY)
Martin D. Gruss
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
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(5) SOLE VOTING POWER
NUMBER OF -0-
--------------------------------------------------------------
SHARES
(6) SHARED VOTING POWER
BENEFICIALLY Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
OWNED BY --------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
-0-
REPORTING --------------------------------------------------------------
PERSON WITH (8) SHARED DISPOSITIVE POWER
Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
-----------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED
BY EACH REPORTING PERSON
Warrants to purchase 512,740 shares of Common Stock
(see Item 4)
-----------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES ** [ ]
-----------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
1.8%
-----------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON **
IN
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** SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 48562P103 13G/A Page 7 of 11 Pages
Item 1(a). Name of Issuer:
The name of the issuer is KapStone Paper and Packaging Corporation (the
"Company").
Item 1(b). Address of Issuer's Principal Executive Offices:
The Company's principal executive office is located at 1101 Skokie Blvd.,
Suite 300, Northbrook, IL 60062
Item 2(a). Name of Person Filing:
This statement is filed by:
(i) Gruss Asset Management, L.P., a Delaware limited partnership
("Gruss L.P.") which serves as the investment manager to, and
has investment discretion over the securities held by, Gruss
Global Investors Master Fund, Ltd., a Cayman Islands Exempted
Company ("GGI") and Gruss Global Investors Master Fund
(Enhanced), Ltd., a Cayman Islands Exempted Company ("GGIE")
with respect to the warrants convertible into \shares of
Common Stock within 60 days("Warrants") directly held by GGI
and GGIE;
(ii) Gruss Co., LLC, a Delaware limited liability company,
("Gruss") which serves as the general partner to Gruss L.P.
with respect to the Warrants directly owned by GGI and GGIE;
(iii) Pegasus Equity Partners II, a New York general partnership
("Pegasus") which is the sole member of Gruss, with respect to
the Warrants directly owned by GGI and GGIE;
(iv) Trust FBO Martin D. Gruss dated April 25, 1988, a Florida
trust (the "Trust") which is a partner of Pegasus, with
respect to the Warrants directly owned by GGI and GGIE; and
(v) Mr. Martin D. Gruss ("Mr. Gruss") who is a partner of Pegasus
and who also serves as the trustee of the Trust with respect
to the Warrants directly owned by GGI and GGIE.
Gruss L.P., Gruss, Pegasus, the Trust and Mr. Gruss are hereinafter
sometimes collectively referred to as the "Reporting Persons." Any disclosures
herein with respect to persons other than the Reporting Persons are made on
information and belief after making inquiry to the appropriate party.
CUSIP No. 48562P103 13G/A Page 8 of 11 Pages
Item 2(b). Address of Principal Business Office or, if None, Residence:
The address of the business office of each of the Reporting Persons is 667
Madison Avenue, New York, NY 10065.
Item 2(c). Citizenship:
Gruss L.P. and Gruss are organized under the laws of the State of Delaware.
Pegasus is organized under the laws of the State of New York. The Trust is
organized under the laws of the State of Florida. Mr. Gruss is a citizen of the
United States of America.
Item 2(d). Title of Class of Securities:
Common Stock, $0.0001 par value (the "Common Stock")
Item 2(e). CUSIP Number:
48562P103
Item 3. If this statement is filed pursuant to Rules 13d-1(b) or 13d-2(b) or
(c), check whether the person filing is a:
(a) [ ] Broker or dealer registered under Section 15 of the Act,
(b) [ ] Bank as defined in Section 3(a)(6) of the Act,
(c) [ ] Insurance Company as defined in Section 3(a)(19) of the Act,
(d) [ ] Investment Company registered under Section 8 of the
Investment Company Act of 1940,
(e) [ ] Investment Adviser in accordance with Rule
13d-1(b)(1)(ii)(E),
(f) [ ] Employee Benefit Plan or Endowment Fund in accordance with
Rule 13d-1(b)(1)(ii)(F),
(g) [ ] Parent Holding Company or control person in accordance with
Rule 13d-1(b)(1)(ii)(G),
(h) [ ] Savings Association as defined in Section 3(b) of the
Federal Deposit Insurance Act,
(i) [ ] Church Plan that is excluded from the definition of an
investment company under Section 3(c)(14) of the Investment
Company Act of 1940,
(j) [ ] Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
If this statement is filed pursuant to 13d-1(c), check this box: [x]
CUSIP No. 48562P103 13G/A Page 9 of 11 Pages
Item 4. Ownership.
A. Gruss, L.P.
(a) Amount beneficially owned:
Warrants to purchase 512,740 shares of Common Stock
(b) Percent of class: 1.8%
The percentages used in this Item 4 and elsewhere in this Schedule
13G are calculated based upon (i) 28,370,248 shares of Common
Stock issued and outstanding on October 31, 2008, as reflected in
the Company's Form 10-Q for the quarterly period ended September
30, 2008 filed on November 10, 2008 and (ii) 512,740 shares of
Common Stock deemed to be outstanding pursuant to Rule
13d-3(d)(1)(i) of the Securities Exchange Act of 1934, as amended,
because such shares may be obtained and beneficially owned upon
exercise or conversion within 60 days of derivative securities
currently owned by the Reporting Persons. Pursuant to Rule
13d-3(d)(1)(i), the number of issued and outstanding shares of
Common Stock assumes that each other holder of derivative
securities does not exercise or convert such derivative securities
within 60 days.
(c) Number of shares as to which such person has:
(i) Sole power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote:
Warrants to purchase 512,740 shares of Common Stock
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition:
Warrants to purchase 512,740 shares of Common Stock
B. Gruss
(a) Amount beneficially owned:
Warrants to purchase 512,740 shares of Common Stock
(b) Percent of class: 1.8%
(c) Number of shares as to which such person has:
(i) Sole power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote:
Warrants to purchase 512,740 shares of Common Stock
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition:
Warrants to purchase 512,740 shares of Common Stock
C. Pegasus
(a) Amount beneficially owned:
Warrants to purchase 512,740 shares of Common Stock
(b) Percent of class: 1.8%
(c) Number of shares as to which such person has:
(i) Sole power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote:
Warrants to purchase 512,740 shares of Common Stock
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition
Warrants to purchase 512,740 shares of Common Stock
D. The Trust
(a) Amount beneficially owned:
Warrants to purchase 512,740 shares of Common Stock
CUSIP No. 48562P103 13G/A Page 10 of 11 Pages
(b) Percent of class: 1.8%
(c) Number of shares as to which such person has:
(i) Sole power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote:
Warrants to purchase 512,740 shares of Common Stock
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition:
Warrants to purchase 512,740 shares of Common Stock
E. Mr. Gruss
(a) Amount beneficially owned:
Warrants to purchase 512,740 shares of Common Stock
(b) Percent of class: 1.8%
(c) Number of shares as to which such person has:
(i) Sole power to vote or direct the vote: -0-
(ii) Shared power to vote or direct the vote:
Warrants to purchase 512,740 shares of Common Stock
(iii) Sole power to dispose or direct the disposition: -0-
(iv) Shared power to dispose or direct the disposition:
Warrants to purchase 512,740 shares of Common Stock
Item 5. Ownership of Five Percent or Less of a Class.
If this statement is being filed to report the fact that as of the date
hereof the Reporting Persons have ceased to be the beneficial owner of more than
five percent of the class of securities, check the following [X].
Item 6. Ownership of More than Five Percent on Behalf of Another Person.
Not applicable.
Item 7. Identification and Classification of the Subsidiary Which Acquired
the Security Being Reported on by the Parent Holding Company.
Not applicable.
Item 8. Identification and Classification of Members of the Group.
See Item 2.
Item 9. Notice of Dissolution of Group.
Not applicable.
CUSIP No. 48562P103 13G/A Page 11 of 11 Pages
Item 10. Certification.
Each of the Reporting Persons hereby makes the following certification:
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were not acquired and are not held for
the purpose of or with the effect of changing or influencing the control of the
issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having that purpose or effect.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
DATED: February 27, 2009
/S/ Martin D. Gruss
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Martin D. Gruss,
Individually, and as trustee of the Trust
for the benefit of Martin D. Gruss dated
April 25, 1988, each a partner of Pegasus
Equity Partners II, the sole member of Gruss
Co., LLC, for itself and as the general
partner of Gruss Asset Management, L.P.