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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13G/A

Under the Securities Exchange Act of 1934
(Amendment No. 1)*

(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)

KapStone Paper and Packaging Corporation
(Name of Issuer)
common stock, par value $0.0001
(Title of Class of Securities)
861575108
(CUSIP Number)
December 31, 2006
(Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

     o Rule 13d-1(b)

     þ Rule 13d-1(c)

     o Rule 13d-1(d)

* 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 the purpose 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.
  
861575108 
  

 

           
1   NAMES OF REPORTING PERSONS:
Sapling, LLC
   
  I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): 
   
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
  (a)   o
  (b)   o
     
3   SEC USE ONLY:
   
   
     
4   CITIZENSHIP OR PLACE OF ORGANIZATION:
   
  Delaware
       
  5   SOLE VOTING POWER:
     
NUMBER OF   0
       
SHARES 6   SHARED VOTING POWER:
BENEFICIALLY    
OWNED BY   381,021
       
EACH 7   SOLE DISPOSITIVE POWER:
REPORTING    
PERSON   0
       
WITH: 8   SHARED DISPOSITIVE POWER:
     
    381,021
     
9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
   
  381,021
     
10   CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
   
  o
     
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9):
   
  1.5%
     
12   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
   
  OO

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CUSIP No.
  
861575108 
  

 

           
1   NAMES OF REPORTING PERSONS:
Fir Tree Recovery Master Fund, L.P.
   
  I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): 
   
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
  (a)   o
  (b)   o
     
3   SEC USE ONLY:
   
   
     
4   CITIZENSHIP OR PLACE OF ORGANIZATION:
   
  Cayman Islands
       
  5   SOLE VOTING POWER:
     
NUMBER OF   0
       
SHARES 6   SHARED VOTING POWER:
BENEFICIALLY    
OWNED BY   18,379
       
EACH 7   SOLE DISPOSITIVE POWER:
REPORTING    
PERSON   0
       
WITH: 8   SHARED DISPOSITIVE POWER:
     
    18,379
     
9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
   
  18,379
     
10   CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
   
  o
     
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9):
   
  0.1%
     
12   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
   
  PN

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CUSIP No.
  
861575108  
  

 

           
1   NAMES OF REPORTING PERSONS:
Fir Tree, Inc.
   
  I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY): 
   
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
  (a)   o
  (b)   o
     
3   SEC USE ONLY:
   
   
     
4   CITIZENSHIP OR PLACE OF ORGANIZATION:
   
  New York
       
  5   SOLE VOTING POWER:
     
NUMBER OF   0
       
SHARES 6   SHARED VOTING POWER:
BENEFICIALLY    
OWNED BY   399,400
       
EACH 7   SOLE DISPOSITIVE POWER:
REPORTING    
PERSON   0
       
WITH: 8   SHARED DISPOSITIVE POWER:
     
    399,400
     
9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
   
  399,400
     
10   CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
   
  o
     
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9):
   
  1.6%
     
12   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
   
  CO

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SCHEDULE 13G/A
     This Amendment No. 1 to Schedule 13G (the “Schedule 13G”) is being filed on behalf of Sapling, LLC, a Delaware limited liability company (“Sapling”), Fir Tree Recovery Master Fund, L.P., a Cayman Islands exempted limited partnership (“Fir Tree Recovery”) and Fir Tree, Inc., a New York corporation (“Fir Tree”), relating to common stock (the “Common Stock”) of KapStone Paper and Packaging Corporation, a Delaware corporation (the “Issuer”), purchased by Sapling and Fir Tree Recovery. Fir Tree Value Master Fund, LP, a Cayman Islands exempted limited partnership (“Fir Tree Value”), is the sole member of Sapling, and Fir Tree is the investment manager of both Sapling and Fir Tree Recovery.
     
Item 1(a)
  Name of Issuer.
 
    
 
  KapStone Paper and Packaging Corporation (Formerly Stone Arcade Acquisition Corp.)
 
    
Item 1(b)
  Address of Issuer’s Principal Executive Offices.
 
    
 
  c/o Stone-Kaplan Investments, LLC
 
  One Northfield Plaza, Suite 480
 
  Northfield, Illinois 60093
 
    
Item 2(a)
  Name of Person Filing.
 
Item 2(b)
  Address of Principal Business Office.
 
Item 2(c)
  Place of Organization.
 
    
 
  Fir Tree, Inc.
 
  505 Fifth Avenue
 
  23rd Floor
 
  New York, New York 10017
 
  A New York corporation
 
    
 
  Sapling, LLC
 
  505 Fifth Avenue
 
  23rd Floor
 
  New York, New York 10017
 
  A Delaware limited liability company
 
    
 
  Fir Tree Recovery Master Fund, L.P.
 
  c/o Admiral Administration Ltd.
 
  Admiral Financial Center, 5th Floor
 
  90 Fort Street, Box 32021 SMB
 
  Grand Cayman, Cayman Islands
 
  A Cayman Islands exempted limited partnership

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Fir Tree, Inc. is the investment manager for each of Sapling and Fir Tree Recovery and has been granted investment discretion over portfolio investments, including the shares of Common Stock (as defined below), held by each of them.
     
Item 2(d)
   Title of Class of Securities.
 
    
 
   Common stock, par value $0.0001 (the “Common Stock”)
 
    
Item 2(e)
   CUSIP Number.
 
    
 
   861575108
 
    
Item 3
   Reporting Person.
 
    
 
   The person filing is not listed in Items 3(a) through 3(j).
 
    
Item 4
   Ownership.
 
    
  (a)   Sapling and Fir Tree Recovery are the beneficial owners of 381,021 shares of Common Stock and 18,379 shares of Common Stock, respectively. Fir Tree may be deemed to beneficially own the shares of Common Stock held by Sapling and Fir Tree Recovery as a result of being the investment manager of Sapling and Fir Tree Recovery.
 
  (b)   Sapling and Fir Tree Recovery are the beneficial owners of 1.5% and 0.1%, respectively, of the outstanding shares of Common Stock. Collectively, the Reporting Persons beneficially own 399,400 shares of Common Stock which represent 1.6% of the shares of Common Stock outstanding. These percentages are determined by dividing the number of shares beneficially held by 25,000,000, the number of shares of Common Stock issued and outstanding as of November 10, 2006, as reported in the Issuer’s Form 10-Q/A filed with the Securities and Exchange Commission on December 12, 2006.
 
  (c)   Sapling may direct the vote and disposition of 381,021 shares of Common Stock. Fir Tree Recovery may direct the vote and disposition of 18,379 shares of Common Stock. Fir Tree has been granted investment discretion over the shares of Common Stock held by Sapling and Recovery.
     
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 5 percent of the class of securities, check the following þ.

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Item 6
  Ownership of More Than Five Percent on Behalf of Another Person.
 
    
 
  Fir Tree Value, as the sole member of Sapling, has the right to receive dividends from and the proceeds from the sale of the Common Stock.
 
    
Item 7
  Identification and Classification of the Subsidiary which Acquired the Security Being Reported On by the Parent Holding Company.
 
    
 
  Inapplicable.
 
    
Item 8
  Identification and Classification of Members of the Group.
 
    
 
  Inapplicable.
 
    
Item 9
  Notice of Dissolution of Group.
 
    
 
  Inapplicable.
 
    
Item 10
  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.

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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.
     Date: February 14, 2007
                 
    SAPLING, LLC    
 
                
    By:   FIR TREE, INC., its Manager    
 
                
 
      By:   /s/ Jeffrey Tannenbaum
 
    
        Name: Jeffrey Tannenbaum    
        Title: President    
 
                
    FIR TREE RECOVERY MASTER FUND, L.P.    
 
                
    By:   FIR TREE, INC., its Manager    
 
                
 
      By:   /s/ Jeffrey Tannenbaum
 
    
        Name: Jeffrey Tannenbaum    
        Title: President    
 
                
    FIR TREE, INC.    
 
                
    By:   /s/ Jeffrey Tannenbaum    
             
    Name: Jeffrey Tannenbaum    
    Title: President    

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