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For what you will spend in time and effort on this type of repair, I would suggest you look at granite as an option. Many local fabricators are offering specials on material that (depending on your sq. feet) could be very close to what you spend on recovering in formica.
Hope this helps.
We used a product called GianiGranite. It is a DIY paint process, but covers the formica perfectly. The reviews i read said that you may need to do an additional top coat (seal) every few years if your countertops get scratched, but we loved the transformation. So affordable and turned out great!
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