-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 UldnskhP3R3whSeQsYo/jLQE+VPB1cbSyrt62diLOQzJbC6pQydYzQv1afguzXCS
 fimtp0W8WtfrIOt7bR1zWA==

<SEC-DOCUMENT>0000928204-07-000013.txt : 20070214
<SEC-HEADER>0000928204-07-000013.hdr.sgml : 20070214
<ACCEPTANCE-DATETIME>20070214173602
ACCESSION NUMBER:		0000928204-07-000013
CONFORMED SUBMISSION TYPE:	5
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061231
FILED AS OF DATE:		20070214
DATE AS OF CHANGE:		20070214

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KAPSTONE PAPER & PACKAGING CORP
		CENTRAL INDEX KEY:			0001325281
		STANDARD INDUSTRIAL CLASSIFICATION:	PAPER MILLS [2621]
		IRS NUMBER:				202699372
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		C/O STONE-KAPLAN INVESTMENTS, LLC
		STREET 2:		ONE NORTHFIELD PLAZA, SUITE 480
		CITY:			NORTHFIELD
		STATE:			IL
		ZIP:			60093
		BUSINESS PHONE:		847-441-0929

	MAIL ADDRESS:	
		STREET 1:		C/O STONE-KAPLAN INVESTMENTS, LLC,
		STREET 2:		ONE NORTHFIELD PLAZA, SUITE 480
		CITY:			NORTHFIELD
		STATE:			IL
		ZIP:			60093

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	KapStone Paper & Packaging CORP
		DATE OF NAME CHANGE:	20070104

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Stone Arcade Acquisition CORP
		DATE OF NAME CHANGE:	20050428

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			WILLIAM HARRIS INVESTORS INC
		CENTRAL INDEX KEY:			0000928204
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		5
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-51444
		FILM NUMBER:		07623494

	BUSINESS ADDRESS:	
		STREET 1:		191 NORTH WACKER DRIVE
		STREET 2:		SUITE 1500
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60606
		BUSINESS PHONE:		3126210590

	MAIL ADDRESS:	
		STREET 1:		191 NORTH WACKER DRIVE
		STREET 2:		SUITE 1500
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60606

	FORMER NAME:	
		FORMER CONFORMED NAME:	HARRIS WILLIAM INVESTORS INC
		DATE OF NAME CHANGE:	19990407
</SEC-HEADER>
<DOCUMENT>
<TYPE>5
<SEQUENCE>1
<FILENAME>primary_doc.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>5</documentType>

    <periodOfReport>2006-12-31</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <form3HoldingsReported>0</form3HoldingsReported>

    <form4TransactionsReported>0</form4TransactionsReported>

    <issuer>
        <issuerCik>0001325281</issuerCik>
        <issuerName>KAPSTONE PAPER &amp; PACKAGING CORP</issuerName>
        <issuerTradingSymbol>SCDE</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000928204</rptOwnerCik>
            <rptOwnerName>WILLIAM HARRIS INVESTORS INC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>191 NORTH WACKER DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 1500</rptOwnerStreet2>
            <rptOwnerCity>CHICAGO</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60606</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>1</isOther>
            <otherText>General Partner of 10% Owner</otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionCoding>
                <transactionFormType></transactionFormType>
            </transactionCoding>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>911667</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>General Partner of WHI Growth Fund QP, LP</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>Warrant</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>5</value>
            </conversionOrExercisePrice>
            <transactionCoding>
                <transactionFormType></transactionFormType>
            </transactionCoding>
            <exerciseDate>
                <value>2005-09-14</value>
            </exerciseDate>
            <expirationDate>
                <value>2009-08-15</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>2261834</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2261834</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>General Partner of WHI Growth Fund QP, LP</value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <ownerSignature>
        <signatureName>Gary Neumayer</signatureName>
        <signatureDate>2007-02-14</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----