Statement of Changes in Beneficial Ownership (4)

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	OMB APPROVAL OMB Number: 3235-0287 Estimated average burden hours per response... 0.5
	Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940

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 (MM/DD/YYYY) 1/12/2016
(Street) RYE, NY 10580 (City)        (State)        (Zip)	4. If Amendment, Date Original Filed (MM/DD/YYYY)	6. Individual or Joint/Group Filing (Check Applicable Line) ___ Form filed by One Reporting Person _ X _ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security (Instr. 3)	2. Trans. Date	2A. Deemed Execution Date, if any	3. Trans. 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	1/12/2016		P		236654	A	$3.1006   (1)	3228841	I	See footnote   (4)
Common Stock	1/12/2016		P		32271	A	$3.1006   (1)	551632	I	See footnote   (4)
Common Stock	1/13/2016		P		425685	A	$3.2247   (2)	3654526	I	See footnote   (4)
Common Stock	1/13/2016		P		58048	A	$3.2247   (2)	609680	I	See footnote   (4)
Common Stock	1/14/2016		P		63260	A	$3.356   (3)	3717786	I	See footnote   (4)
Common Stock	1/14/2016		P		8626	A	$3.356   (3)	618306	I	See footnote   (4)
Common Stock	1/14/2016		P		880000	A	$3.55	4597786	I	See footnote   (4)
Common Stock	1/14/2016		P		120000	A	$3.55	738306	I	See footnote   (4)
Common Stock								3126184	I	See footnote   (4)
Common Stock								77293	I	See footnote   (4)
Common Stock								48153	I	See footnote   (5)
Common Stock								192612	I	See footnote   (5)

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Trans. Date	3A. Deemed Execution Date, if any	4. Trans. 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		7. Title and Amount of Securities Underlying Derivative Security (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

Explanation of Responses:
( 1)	This transaction was executed in multiple trades at prices ranging from $3.035 to $3.180. The price reported above reflects the weighted average sale price. Detailed information regarding the number of shares transacted at each separate price will be provided upon request by the Commission staff, the Issuer or a security holder of the Issuer.
( 2)	This transaction was executed in multiple trades at prices ranging from $3.11 to $3.45. The price reported above reflects the weighted average sale price. Detailed information regarding the number of shares transacted at each separate price will be provided upon request by the Commission staff, the Issuer or a security holder of the Issuer.
( 3)	This transaction was executed in multiple trades at prices ranging from $3.26 to $3.43. The price reported above reflects the weighted average sale price. Detailed information regarding the number of shares transacted at each separate price will be provided upon request by the Commission staff, the Issuer or a security holder of the Issuer.
( 4)	The securities are directly held by private investment funds for which (i) Candlewood Investment Group, LP (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 Investment Manager, the Fund GP and the Manager GP disclaims pecuniary interest in the reported securities except to the extent of its economic interest.
( 5)	The securities are directly held by private investment funds for which the Investment Manager controls the investment manager advising such funds. The Manager GP serves as the general partner of the Investment Manager. Each of the Investment Manager and the Manager GP disclaims pecuniary interest in the reported securities except to the extent of its economic interest.

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

Signatures
/s/ Candlewood Investment Group, LP, by Janet Miller, its Chief Operating Officer and General Counsel		1/14/2016
** Signature of Reporting Person		Date
/s/ Candlewood Special Situations General, LLC, by Michael Lau, its Class A Member		1/14/2016
** Signature of Reporting Person		Date
/s/ Candlewood Investment Group General, LLC, by Michael Lau, its Manager		1/14/2016
** 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 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).
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