SEC FORM 3

SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF 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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1. Name and Address of Reporting Person^*

DeSantis Philip Frank

(Last)

(First)

(Middle)

C/O CANDLEWOOD INVESTMENT GROUP, LP

555 THEODORE FREMD AVE., SUITE C-303

(Street)

RYE

10580

(City)

(State)

(Zip)

2. Date of Event Requiring Statement (Month/Day/Year)
03/01/2017

3. Issuer Name and Ticker or Trading Symbol
Pacific Ethanol, Inc. [ PEIX ]

4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

Director	X	10% Owner
Officer (give title below)		Other (specify below)

5. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock	4,207	D
Common Stock	3,987,194	I	See footnote⁽¹⁾
Common Stock	58,784	I	See footnote⁽¹⁾
Common Stock	900,177	I	See footnote⁽¹⁾
Common Stock	77,292	I	See footnote⁽¹⁾

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivative Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
Non-Voting Common Stock	⁽²⁾	⁽²⁾	Common Stock	4,081	⁽²⁾	D
Non-Voting Common Stock	⁽²⁾	⁽²⁾	Common Stock	1,797,147	⁽²⁾	I	See footnote⁽¹⁾
Non-Voting Common Stock	⁽²⁾	⁽²⁾	Common Stock	38,417	⁽²⁾	I	See footnote⁽¹⁾
Non-Voting Common Stock	⁽²⁾	⁽²⁾	Common Stock	201,226	⁽²⁾	I	See footnote⁽¹⁾
Non-Voting Common Stock	⁽²⁾	⁽²⁾	Common Stock	46,298	⁽²⁾	I	See footnote⁽¹⁾

Explanation of Responses:

1. The securities are directly held by a private investment fund for which Candlewood Investment Group, LP (the "Investment Manager") serves as the investment manager. The Reporting Person is a managing partner of the Investment Manager. The Reporting Person disclaims beneficial ownership of the reported securities except to the extent of his pecuniary interest.

2. The Non-Voting Common Stock are convertible on a one-for-one basis into Common Stock. However, the Reporting Person cannot convert the Non-Voting Common Stock if he and any of his affiliates would, after such conversion, beneficially own greater than 9.99% of the Common Stock. The beneficial ownership of the Common Stock by the Reporting Person and his affiliates currently exceeds 9.99%, and accordingly, he cannot currently convert any of the Non-Voting Common Stock. The right to convert Non-Voting Common Stock into Common Stock does not expire.

Remarks:

	/s/ Philip F. DeSantis	03/08/2017
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 5 (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).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
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