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                                                                   Exhibit 99.09

CONTACT: JAMES W. SWENT
                                           Chief Executive Officer
                                           American Pad & Paper Co.
                                           (972) 733-6200
FOR IMMEDIATE RELEASE
                                           ROBERT P. JONES/THERESA SCHILLERO
                                           LESLIE FELDMAN - PRESS
                                           (212) 850-5600
                                           Ken Pieper
                                           (972) 663-9390
                                           Morgen-Walke Associates

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             AMERICAN PAD & PAPER COMPANY RECEIVES WAIVER EXTENSION

     DALLAS, Texas, July 31, 1998 - American Pad & Paper (NYSE:AGP) announced 
today that it has executed an amendment with its banking group waiving all the
defaults of the financial covenants of its loan agreement through September 30,
1998.

     James W. Swent, III, Chief Executive Officer said, "We are extremely 
pleased with the support we have received from our banks in working through this
issue. We will be working with the banks during the third quarter to negotiate a
permanent amendment to the current agreement that will be beneficial to all
parties.  In addition to our banks, we have received strong support from all our
vendors and customers including our independent merchants, our regional and
national chains, our contract stationers, and our superstores."

     American Pad & Paper Company is a leading manufacturer and marketer of
paper-based office products in North America.  The company manufactures and
distributes writing pads, folders, envelopes and other office products.  Name
brands include Ampad, Century, Embassy, Gold fibre, Huxley, Karolton, Kent,
Peel & Seel, SCM, Williamhouse and World Fibre.

     This release contains forward-looking statements relating to future 
results. Actual results may differ significantly as a result of factors over
which the company has no control, including the strength of domestic and foreign
economies, slower than anticipated sales growth, price and product competition
and increases in raw material costs.  Additional information which could affect
the company's financial results is included in the company's prospectus on file
with the Securities and Exchange Commission.

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