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Filing Details

Accession Number:
0001193125-17-090521
Form Type:
13G Filing
Publication Date:
2017-03-21 13:53:03
Filed By:
Candlewood Investment Group
Company:
Pacific Ethanol Inc. (NASDAQ:PEIX)
Filing Date:
2017-03-21
SEC Url:
13G Filing
Ownership Summary

Please notice the below summary table is generated without human intervention and may contain errors. Please refer to the complete filing displayed below for exact figures.

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
Candlewood Investment Group 0 3,603,196 0 3,603,196 3,603,196 9.1%
Michael Lau 7,284 3,603,196 7,284 3,603,196 3,610,480 9.1%
David Koenig 2,742 3,603,196 2,742 3,603,196 3,605,938 9.1%
Phil DeSantis 4,207 3,603,196 4,207 3,603,196 3,607,403 9.1%
Jonathan Weiss 0 3,603,196 0 3,603,196 3,603,196 9.1%
Candlewood Investment Group General 0 3,603,196 0 3,603,196 3,603,196 9.1%
Candlewood Special Situations General 0 3,603,196 0 3,603,196 3,603,196 9.1%
Candlewood Special Situations Master Fund, Ltd 0 3,603,196 0 3,603,196 3,603,196 9.1%
Filing

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13G

Under the Securities Exchange Act of 1934

(Amendment No.     )*

 

 

Pacific Ethanol, Inc.

(Name of Issuer)

Common Stock, $0.001 par value

(Title of Class of Securities)

69423U305

(CUSIP Number)

March 21, 2017

(Date of Event Which Requires Filing of this Statement)

 

 

Check the appropriate box to designate the rule pursuant to which this Schedule is filed:

☐ Rule 13d-1(b)

☒ Rule 13d-1(c)

☐ Rule 13d-1(d)

 

* The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 


 

CUSIP No.    69423U305

   13G   

 

Page     2     of    16    Pages  

 

  1   

NAMES OF REPORTING PERSONS

 

Candlewood Investment Group, LP

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☐

 

  3  

SEC USE ONLY

 

  4  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH

     

SOLE VOTING POWER

 

0

   6   

SHARED VOTING POWER

 

3,603,196

   7   

SOLE DISPOSITIVE POWER

 

0

   8   

SHARED DISPOSITIVE POWER

 

3,603,196

  9  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,603,196

10  

CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)  ☐

 

11  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

9.1%

12  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IA

 

 

Page 2 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     3     of    16    Pages  

 

  1   

NAMES OF REPORTING PERSONS

 

Michael Lau

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☐

 

  3  

SEC USE ONLY

 

  4  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH

     

SOLE VOTING POWER

 

7,284

   6   

SHARED VOTING POWER

 

3,603,196

   7   

SOLE DISPOSITIVE POWER

 

7,284

   8   

SHARED DISPOSITIVE POWER

 

3,603,196

  9  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,610,480

10  

CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)  ☐

 

11  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

9.1%

12  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IN

 

 

Page 3 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     4     of    16    Pages  

 

  1   

NAMES OF REPORTING PERSONS

 

David Koenig

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☐

 

  3  

SEC USE ONLY

 

  4  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH

     

SOLE VOTING POWER

 

2,742

   6   

SHARED VOTING POWER

 

3,603,196

   7   

SOLE DISPOSITIVE POWER

 

2,742

   8   

SHARED DISPOSITIVE POWER

 

3,603,196

  9  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,605,938

10  

CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)  ☐

 

11  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

9.1%

12  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IN

 

 

Page 4 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     5     of    16    Pages  

 

  1   

NAMES OF REPORTING PERSONS

 

Phil DeSantis

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☐

 

  3  

SEC USE ONLY

 

  4  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH

     

SOLE VOTING POWER

 

4,207

   6   

SHARED VOTING POWER

 

3,603,196

   7   

SOLE DISPOSITIVE POWER

 

4,207

   8   

SHARED DISPOSITIVE POWER

 

3,603,196

  9  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,607,403

10  

CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)  ☐

 

11  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

9.1%

12  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IN

 

 

Page 5 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     6     of    16    Pages  

 

  1   

NAMES OF REPORTING PERSONS

 

Jonathan Weiss

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☐

 

  3  

SEC USE ONLY

 

  4  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

United States

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH

     

SOLE VOTING POWER

 

0

   6   

SHARED VOTING POWER

 

3,603,196

   7   

SOLE DISPOSITIVE POWER

 

0

   8   

SHARED DISPOSITIVE POWER

 

3,603,196

  9  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,603,196

10  

CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)  ☐

 

11  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

9.1%

12  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IN

 

 

Page 6 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     7     of    16    Pages  

 

  1   

NAMES OF REPORTING PERSONS

 

Candlewood Investment Group General, LLC

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☐

 

  3  

SEC USE ONLY

 

  4  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH

     

SOLE VOTING POWER

 

0

   6   

SHARED VOTING POWER

 

3,603,196

   7   

SOLE DISPOSITIVE POWER

 

0

   8   

SHARED DISPOSITIVE POWER

 

3,603,196

  9  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,603,196

10  

CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)  ☐

 

11  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

9.1%

12  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO

 

 

Page 7 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     8     of    16    Pages  

 

  1   

NAMES OF REPORTING PERSONS

 

Candlewood Special Situations General, LLC

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☐

 

  3  

SEC USE ONLY

 

  4  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Delaware

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH

     

SOLE VOTING POWER

 

0

   6   

SHARED VOTING POWER

 

3,603,196

   7   

SOLE DISPOSITIVE POWER

 

0

   8   

SHARED DISPOSITIVE POWER

 

3,603,196

  9  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,603,196

10  

CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)  ☐

 

11  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

9.1%

12  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO

 

 

Page 8 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     9     of    16    Pages  

 

  1   

NAMES OF REPORTING PERSONS

 

Candlewood Special Situations Master Fund, Ltd.

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ☐        (b)  ☐

 

  3  

SEC USE ONLY

 

  4  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Cayman Islands

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH

     

SOLE VOTING POWER

 

0

   6   

SHARED VOTING POWER

 

3,603,196

   7   

SOLE DISPOSITIVE POWER

 

0

   8   

SHARED DISPOSITIVE POWER

 

3,603,196

  9  

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

3,603,196

10  

CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)  ☐

 

11  

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 

9.1%

12  

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO

 

 

Page 9 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     10     of    16    Pages  

 

Explanatory Note

The Reporting Persons (as defined below) are filing this Schedule 13G pursuant to Rule 13d-1(h) under the Securities Exchange Act of 1934.

 

Item 1(a). Name of Issuer: Pacific Ethanol, Inc. (the Company)

 

Item 1(b). Address of Issuers Principal Executive Offices:

400 Capitol Mall, Suite 2060

Sacramento, CA 95814

 

Item 2(a). Name of Persons Filing:

This Schedule 13G is being filed by:

 

  i. Candlewood Special Situations Master Fund, Ltd. (the Special Situations Fund).

 

  ii. Candlewood Special Situations General, LLC (the Fund GP).

 

  iii. Candlewood Investment Group, LP (the Investment Manager).

 

  iv. Candlewood Investment Group General, LLC (the Manager GP).

 

  v. Mr. Michael Lau, Mr. David Koenig, Mr. Phil DeSantis and Mr. Jonathan Weiss (collectively, the Managing Partners) (the Managing Partners, together with the Special Situations Fund, the Fund GP, the Investment Manager and the Manager GP, the Reporting Persons).

 

Item 2(b). Address of Principal Business Office or, if None, Residence:

555 Theodore Fremd Ave., Suite C-303

Rye, NY 10580

 

Item 2(c). Citizenship:

 

   Special Situations Fund:    Cayman Islands
   Fund GP:    Delaware
   Investment Manager:    Delaware
   Manager GP:    Delaware
   Managing Partners:    United States of America

 

Item 2(d). Title of Class of Securities: Common Stock, par value $0.001 (the Common Stock)

 

Item 2(e). CUSIP Number: 69423U305

 

Page 10 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     11     of    16    Pages  

 

Item 3. If this statement is filed pursuant to Rule 13d-1(b), or 13d-2(b) or (c), Check Whether the Person Filing is a:

Not applicable.

 

Item 4. Ownership.

The information set forth in rows 5 through 11 of the cover pages to this Schedule 13G is incorporated by reference. The percentage set forth in row 11 is based on 39,811,296 outstanding shares of Common Stock as of March 15, 2017, as reported in the Issuers Form 10-K filed on March 15, 2017. Certain private investment funds advised by the Investment Manager, including the Special Situations Fund, directly hold the shares of Common Stock. The Fund GP serves as general partner to these private investment funds, including the Special Situations Fund. The Manager GP serves as general partner to the Investment Manager. The Managing Partners are managing partners of the Investment Manager.

The Special Situations Fund and certain other private investment funds advised by the Investment Manager also directly hold shares of non-voting common stock, $0.001 par value, of the Issuer (the Non-Voting Common Stock). The Special Situations Fund holds 1,797,147 shares of Non-Voting Common Stock and certain other private investment funds advised by the Investment Manager hold, in the aggregate, 285,941 shares of Non-Voting Common Stock. The Non-Voting Common Stock are convertible on a one-for-one basis into Common Stock (i) if the holder of such shares of Non-Voting Common Stock and any of its affiliates would not, after such conversion, beneficially own greater than 9.99% of the Companys outstanding shares of Common Stock and (ii) no earlier than sixty-one days after the Company receives a notice of conversion from the holder. Because the Reporting Persons cannot acquire such converted Common Stock within sixty days, they do not have beneficial ownership of such converted Common Stock.

 

Item 5. Ownership of Five Percent or Less of a Class.

Not applicable.

 

Item 6. Ownership of More than Five Percent on Behalf of Another Person.

The private investment funds advised by the Investment Manager that directly hold the shares of Common Stock have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the shares of Common Stock (the Economic Interest) reported as beneficially owned by the Investment Manager, the Fund GP, the Manager GP and the Managing Partners (other than shares of Common Stock for which a Managing Partner has sole voting and dispositive power). The Economic Interest of the Special Situations Fund exceeds five percent of the Common Stock.

 

Item 7. Identification and Classification of the Subsidiary which Acquired the Security Being Reported on By the Parent Holding Company or Control Person.

Not applicable.

 

Page 11 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     12     of    16    Pages  

 

Item 8. Identification and Classification of Members of the Group.

Not applicable.

 

Item 9. Notice of Dissolution of Group.

Not applicable.

 

Item 10. Certification.

By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

 

Page 12 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     13     of    16    Pages  

 

SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Dated: March 21, 2017

 

CANDLEWOOD INVESTMENT GROUP, LP

By:  

/s/ Janet Miller

Name:   Janet Miller
Title:   COO/GC/Authorized Person
CANDLEWOOD INVESTMENT GROUP GENERAL, LLC
By:  

/s/ Michael Lau

Name:   Michael Lau
Title:   Manager
CANDLEWOOD SPECIAL SITUATIONS MASTER FUND, LTD.
By:  

/s/ David Koenig

Name:   David Koenig
Title:   Portfolio Manager
CANDLEWOOD SPECIAL SITUATIONS GENERAL, LLC
By:  

/s/ Michael Lau

Name:   Michael Lau
Title:   Class A Member

/s/ Michael Lau

Michael Lau

/s/ David Koenig

David Koenig

 

Page 13 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     14     of    16    Pages  

 

/s/ Phil DeSantis

Phil DeSantis

/s/ Jonathan Weiss

Jonathan Weiss

 

Page 14 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     15     of    16    Pages  

 

EXHIBIT I

AGREEMENT OF JOINT FILING

The persons below hereby agree that the Schedule 13G to which this agreement is attached as an exhibit, as well as all future amendments to such Schedule 13G, shall be filed jointly on behalf of each of them. This agreement is intended to satisfy the requirements of Rule 13d-1(k)(1)(iii) under the Securities Exchange Act of 1934.

 

Dated: March 21, 2017     CANDLEWOOD INVESTMENT GROUP, LP
    By:  

/s/ Janet Miller

    Name:   Janet Miller
    Title:   COO/GC/Authorized Person
    CANDLEWOOD INVESTMENT GROUP GENERAL, LLC
    By:  

/s/ Michael Lau

    Name:   Michael Lau
    Title:   Manager
    CANDLEWOOD SPECIAL SITUATIONS MASTER FUND, LTD.
    By:  

/s/ David Koenig

    Name:   David Koenig
    Title:   Portfolio Manager
    CANDLEWOOD SPECIAL SITUATIONS GENERAL, LLC
    By:  

/s/ Michael Lau

    Name:   Michael Lau
    Title:   Class A Member
   

/s/ Michael Lau

    Michael Lau
   

/s/ David Koenig

    David Koenig

 

Page 15 of 16 Pages


 

CUSIP No.    69423U305

   13G   

 

Page     16     of    16    Pages  

 

     

/s/ Phil DeSantis

      Phil DeSantis
     

/s/ Jonathan Weiss

      Jonathan Weiss

 

Page 16 of 16 Pages