SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 RULE 13d-2(b)
(Amendment No. __)
KapStone Paper and Packaging Corporation*
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(Name of Issuer)
Common Stock, $0.0001 par value
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(Title of Class of Securities)
48562P103
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(CUSIP Number)
August 13, 2009
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(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
[_] Rule 13d-1(b)
[X] Rule 13d-1(c)
[_] Rule 13d-1(d)
The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 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).
*Effective August 24, 2009, the Reporting Persons will be reporting their
beneficial ownership in the Issuer's Common Stock on a Schedule 13G and will no
longer be reporting their beneficial ownership in the Issuer's Common Stock on a
Schedule 13D.
CUSIP No. 48562P103
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1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Ronald E. Gutfleish
c/o Elm Ridge Capital Management, LLC
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [x]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
5,501,111
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
5,501,111
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,501,111
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.6%
12. TYPE OF REPORTING PERSON
IN
CUSIP No. 48562P103
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1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Elm Ridge Capital Management, LLC
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [x]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
5,501,111
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
5,501,111
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,501,111
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
17.6%
12. TYPE OF REPORTING PERSON
IA
CUSIP No. 48562P103
---------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Elm Ridge Offshore Master Fund, Ltd.
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [x]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
5,277,388
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
5,277,388
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,277,388
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
16.8%
12. TYPE OF REPORTING PERSON
CO
CUSIP No. 48562P103
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Item 1(a). Name of Issuer:
KapStone Paper and Packaging Corporation
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Item 1(b). Address of Issuer's Principal Executive Offices:
1101 Skokie Blvd., Suite 300
Northbrook, IL 60062
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Item 2(a). Name of Persons Filing:
Ronald E. Gutfleish
Elm Ridge Capital Management, LLC
Elm Ridge Offshore Master Fund, Ltd.
Item 2(b). Address of Principal Business Office, or if None, Residence:
Ronald E. Gutfleish
c/o Elm Ridge Capital Management, LLC
3 West Main Street, 3rd Floor
Irvington, NY 10533
Elm Ridge Capital Management, LLC
3 West Main Street, 3rd Floor
Irvington, NY 10533
Elm Ridge Offshore Master Fund, Ltd.
c/o Goldman Sachs (Cayman) Trust, Limited
P.O. Box 896
Harbour Centre, 2nd Floor
George Town, Grand Cayman
Cayman Islands
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Item 2(c). Citizenship
Ronald E. Gutfleish - United States
Elm Ridge Capital Management, LLC - Delaware limited liability
company
Elm Ridge Offshore Master Fund, Ltd. - Cayman Islands exempted
company
Item 2(d). Title of Class of Securities:
Common Stock, $0.0001 par value
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Item 2(e). CUSIP Number:
48562P103
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Item 3. If This Statement is Filed Pursuant to Rule 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 Exchange Act.
(b) [_] Bank as defined in Section 3(a)(6) of the Exchange Act.
(c) [_] Insurance company as defined in Section 3(a)(19) of the Exchange
Act.
(d) [_] Investment company registered under Section 8 of the Investment
Company Act.
(e) [_] An investment adviser in accordance with Rule 13d-1(b)(1)(ii)(E);
(f) [_] An employee benefit plan or endowment fund in accordance with
Rule 13d-1(b)(1)(ii)(F);
(g) [_] A parent holding company or control person in accordance with
Rule 13d-1(b)(1)(ii)(G);
(h) [_] A savings association as defined in Section 3(b) of the Federal
Deposit Insurance Act;
(i) [_] A church plan that is excluded from the definition of an
investment company under Section 3(c)(14) of the Investment
Company Act;
(j) [_] Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
Item 4. Ownership.
Provide the following information regarding the aggregate number and
percentage of the class of securities of the issuer identified in Item 1.
(a) Amount beneficially owned:
Ronald E. Gutfleish 5,501,111 shares
Elm Ridge Capital Management, LLC 5,501,111 shares
Elm Ridge Offshore Master Fund, Ltd. 5,277,388 shares
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(b) Percent of class:
Ronald E. Gutfleish 17.6%
Elm Ridge Capital Management, LLC 17.6%
Elm Ridge Offshore Master Fund, Ltd. 16.8%
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(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote
Ronald E. Gutfleish 0
Elm Ridge Capital Management, LLC 0
Elm Ridge Offshore Master Fund, Ltd. 0
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(ii) Shared power to vote or to direct the vote
Ronald E. Gutfleish 5,501,111
Elm Ridge Capital Management, LLC 5,501,111
Elm Ridge Offshore Master Fund, Ltd. 5,277,388
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(iii) Sole power to dispose or to direct the disposition of
Ronald E. Gutfleish 0
Elm Ridge Capital Management, LLC 0
Elm Ridge Offshore Master Fund, Ltd. 0
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(iv) Shared power to dispose or to direct the disposition of
Ronald E. Gutfleish 5,501,111
Elm Ridge Capital Management, LLC 5,501,111
Elm Ridge Offshore Master Fund, Ltd. 5,277,388
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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 person has ceased to be the beneficial owner of more than
five percent of the class of securities check the following [ ].
N/A
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Item 6. Ownership of More Than Five Percent on Behalf of Another Person.
If any other person is known to have the right to receive or the power to
direct the receipt of dividends from, or the proceeds from the sale of, such
securities, a statement to that effect should be included in response to this
item and, if such interest relates to more than five percent of the class, such
person should be identified. A listing of the shareholders of an investment
company registered under the Investment Company Act of 1940 or the beneficiaries
of employee benefit plan, pension fund or endowment fund is not required.
N/A
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Item 7. Identification and Classification of the Subsidiary Which Acquired the
Security Being Reported on by the Parent Holding Company or Control
Person.
If a parent holding company or Control person has filed this schedule,
pursuant to Rule 13d-1(b)(1)(ii)(G), so indicate under Item 3(g) and attach an
exhibit stating the identity and the Item 3 classification of the relevant
subsidiary. If a parent holding company or control person has filed this
schedule pursuant to Rule 13d-1(c) or Rule 13d-1(d), attach an exhibit stating
the identification of the relevant subsidiary.
N/A
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Item 8. Identification and Classification of Members of the Group.
If a group has filed this schedule pursuant to s.240.13d-1(b)(1)(ii)(J), so
indicate under Item 3(j) and attach an exhibit stating the identity and Item 3
classification of each member of the group. If a group has filed this schedule
pursuant to s.240.13d-1(c) or s.240.13d-1(d), attach an exhibit stating the
identity of each member of the group.
N/A
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Item 9. Notice of Dissolution of Group.
Notice of dissolution of a group may be furnished as an exhibit stating the
date of the dissolution and that all further filings with respect to
transactions in the security reported on will be filed, if required, by members
of the group, in their individual capacity. See Item 5.
N/A
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Item 10. Certifications.
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 such 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.
August 24, 2009
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(Date)
Ronald E. Gutfleish*
/s/ Ronald E. Gutfleish
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Elm Ridge Capital Management, LLC*
BY: /s/ Ronald E. Gutfleish
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Name: Ronald E. Gutfleish
Title: Managing Member
Elm Ridge Offshore Master Fund, Ltd.*
BY: /s/ Ronald E. Gutfleish
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Name: Ronald E. Gutfleish
Title: Portfolio Manager
* The Reporting Person disclaims beneficial ownership in the Common Stock,
except to the extent of its pecuniary interest therein.
Exhibit A
AGREEMENT
The undersigned agree that this Schedule 13G dated August 24, 2009 relating to
the Common Stock of KapStone Paper and Packaging Corporation shall be filed on
behalf of the undersigned.
August 24, 2009
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(Date)
Ronald E. Gutfleish*
/s/ Ronald E. Gutfleish
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Elm Ridge Capital Management, LLC*
BY: /s/ Ronald E. Gutfleish
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Name: Ronald E. Gutfleish
Title: Managing Member
Elm Ridge Offshore Master Fund, Ltd.
BY: /s/ Ronald E. Gutfleish
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Name: Ronald E. Gutfleish
Title: Portfolio Manager
SK 03563 0004 1024429