FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
Candlewood Investment Group, LP
   2. Issuer Name and Ticker or Trading Symbol
Pacific Ethanol, Inc. [PEIX] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director __X__ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
555 THEODORE FREMD AVE, SUITE C-303		 3. Date of Earliest Transaction (Month/Day/Year)
03/01/2017
(Street)

RYE, NY 10580		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
___ Form filed by One Reporting Person
_X_ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 03/01/2017   J(1)   2,007,792 D (1) 58,784 I See Footnote (2)
Common Stock 03/01/2017   J(1)   118,935 D (1) 0 I See Footnote (3)
Common Stock 03/01/2017   J(1)   29,734 D (1) 0 I See Footnote (3)
Common Stock               3,987,194 I See Footnote (4)
Common Stock               900,177 I See Footnote (2)
Common Stock               77,292 I See Footnote (2)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Non-Voting Common Stock (5) 03/01/2017   J(1)     1,312,160   (5)   (5) Common Stock 1,312,160 (1) 38,417 I See Footnote (2)
Non-Voting Common Stock (5) 03/01/2017   J(1)     115,376   (5)   (5) Common Stock 115,376 (1) 0 I See Footnote (3)
Non-Voting Common Stock (5) 03/01/2017   J(1)     28,844   (5)   (5) Common Stock 28,844 (1) 0 I See Footnote (3)
Non-Voting Common Stock (5)               (5)   (5) Common Stock 1,797,147   1,797,147 I See Footnote (4)
Non-Voting Common Stock (5)               (5)   (5) Common Stock 201,226   201,226 I See Footnote (2)
Non-Voting Common Stock (5)               (5)   (5) Common Stock 46,298   46,298 I See Footnote (2)

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Candlewood Investment Group, LP
555 THEODORE FREMD AVE
SUITE C-303
RYE, NY 10580		     X    
Candlewood Special Situations General, LLC
555 THEODORE FREMD AVE
SUITE C-303
RYE, NY 10580		     X    
Candlewood Investment Group General, LLC
555 THEODORE FREMD AVE
SUITE C-303
RYE, NY 10580		     X    
Candlewood Special Situations Master Fund, Ltd.
555 THEODORE FREMD AVE
SUITE C-303
RYE, NY 10580		     X    

Signatures

 Candlewood Investment Group, LP, By: /s/ Janet Miller, its Chief Operating Officer and General Counsel   03/03/2017
**Signature of Reporting Person Date
 Candlewood Special Situations General, LLC, By: /s/ Michael Lau, its Class A Member   03/03/2017
**Signature of Reporting Person Date
 Candlewood Investment Group General, LLC, By: /s/ Michael Lau, its Manager   03/03/2017
**Signature of Reporting Person Date
 Candlewood Special Situations Master Fund, Ltd., By: /s/ David Koenig, its Portfolio Manager   03/03/2017
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) On March 1, 2017, three private investment funds for which Candlewood Investment Group, LP serves as investment manager (the "Investment Manager") each distributed the Issuer's securities to its investors as part of a pro rata distribution.
(2) The securities are directly held by a private investment fund for which (i) the Investment Manager serves as the investment manager and (ii) Candlewood Special Situations General, LLC (the "Fund GP") serves as the general partner. Candlewood Investment Group General, LLC (the "Manager GP") serves as the general partner of the Investment Manager. Each of the Reporting Persons disclaims beneficial ownership of the reported securities except to the extent of its pecuniary interest.
(3) The securities are directly held by a private investment fund for which the Investment Manager controls the investment manager advising such fund. The Manager GP serves as the general partner of the Investment Manager. Each of the Reporting Persons disclaims beneficial ownership of the reported securities except to the extent of its pecuniary interest.
(4) The securities are directly held by Candlewood Special Situations Master Fund, Ltd. (the "Special Situations Fund"). The Investment Manager serves as the investment manager to the Special Situations Fund, and the Fund GP serves as the general partner of the Special Situations Fund. The Manager GP serves as the general partner of the Investment Manager. Each of the Reporting Persons, other than the Special Situations Fund, disclaims beneficial ownership of the reported securities except to the extent of its pecuniary interest.
(5) The Non-Voting Common Stock are convertible on a one-for-one basis into Common Stock. However, the holder cannot convert the securities if it and any of its affiliates would, after such conversion, beneficially own greater than 9.99% of the Common Stock. The beneficial ownership of the Common Stock by the holder and its affiliates currently exceeds 9.99%, and accordingly, it cannot currently convert any of the Non-Voting Common Stock. The right to convert Non-Voting Common Stock into Common Stock does not expire.

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