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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D/A

Under the Securities Exchange Act of 1934
(Amendment No. 1 )*

DELTA FINANCIAL CORPORATION
(Name of Issuer)
Common Stock, $0.01 par value per share
(Title of Class of Securities)
247918105
(CUSIP Number)
Mohnish Pabrai
Pabrai Investment Funds
114 Pacifica
Suite 240
Irvine, CA 92618-3321
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
December 14, 2007
(Date of Event Which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

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

The information required on 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.
 
247918105 
  Page  
  of   
12 

 

           
1   NAMES OF REPORTING PERSONS

The Pabrai Investment Fund II, L.P.
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    o  
  (b)    þ  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  WC
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  Illinois
       
  7   SOLE VOTING POWER
     
NUMBER OF   0
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   130,000
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   0
       
WITH 10   SHARED DISPOSITIVE POWER
     
    130,000
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  130,000
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  1%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  PN


 

                     
CUSIP No.
 
247918105 
  Page  
  of   
12 

 

           
1   NAMES OF REPORTING PERSONS

Pabrai Investment Fund 3, Ltd.
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    o  
  (b)    þ  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  WC
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  British Virgin Islands
       
  7   SOLE VOTING POWER
     
NUMBER OF   0
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   860,000
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   0
       
WITH 10   SHARED DISPOSITIVE POWER
     
    860,000`
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  860,000
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  3.6%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  CO


 

                     
CUSIP No.
 
247918105 
  Page  
  of   
12 

 

           
1   NAMES OF REPORTING PERSONS

The Pabrai Investment Fund IV, L.P.
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    o  
  (b)    þ  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  WC
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  Delaware
       
  7   SOLE VOTING POWER
     
NUMBER OF   0
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   940,000
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   0
       
WITH 10   SHARED DISPOSITIVE POWER
     
    940,000
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  940,000
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  4.0%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  PN


 

                     
CUSIP No.
 
247918105 
  Page  
  of   
12 

 

           
1   NAMES OF REPORTING PERSONS

Dalal Street, LLC
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    o  
  (b)    þ  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  00
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  California
       
  7   SOLE VOTING POWER
     
NUMBER OF   0
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   1,960,000
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   0
       
WITH 10   SHARED DISPOSITIVE POWER
     
    1,960,000
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  1,960,000
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  8.3%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  CO


 

                     
CUSIP No.
 
247918105 
  Page  
  of   
12 

 

           
1   NAMES OF REPORTING PERSONS

The Dakshana Foundation
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

  (a)    o  
  (b)    þ  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  WC
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  California
       
  7   SOLE VOTING POWER
     
NUMBER OF   0
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   40,000
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   0
       
WITH 10   SHARED DISPOSITIVE POWER
     
    40,000
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  40,000
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  *
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  OO
* Less than one-tenth of 1%


 

                     
CUSIP No.
 
247918105 
  Page  
  of   
12 

 

           
1   NAMES OF REPORTING PERSONS

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

  (a)    o  
  (b)    þ  
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  00
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  United States
       
  7   SOLE VOTING POWER
     
NUMBER OF   0
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   2,000,000
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   0
       
WITH 10   SHARED DISPOSITIVE POWER
     
    2,000,000
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  2,000,000
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  8.5%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN


 

CUSIP No. 247918105   Page 8 of 12
Item 1.   Security and Issuer
This Amendment No. 1 (this “Amendment”) to Schedule 13D is being filed on behalf of the undersigned to amend the Schedule 13D dated October 16, 2007 (the “Schedule 13D”), relating to the common stock, par value $0.01 per share (the “Common Stock”), of Delta Financial Corporation, a Delaware corporation (the “Issuer”). The Issuer’s principal executive offices are located at 1000 Woodbury Road, Suite 200, Woodbury, New York 11797. Unless otherwise indicated, all capitalized terms used herein but not defined herein shall have the same meaning as set forth in the Schedule 13D.
Item 5.   Interest in Securities of the Issuer
Item 5 of the Schedule 13D is hereby amended and restated in its entirety, as follows:
     (a) As of the date hereof, each of the Reporting Persons are the owners of the following number of shares of Common Stock, which represent the percentage of the outstanding shares of Common Stock, based upon the 23,611,861 shares of Common Stock reported by the Issuer to be issued and outstanding as of November 6, 2007, as reported in the Form 10-Q for the fiscal quarter ended September 30, 2007, filed with the Securities and Exchange Commission on November 8, 2007:
          (i) PIF2 directly beneficially owns 130,000 shares of Common Stock, constituting 1.0% of the outstanding shares of Common Stock;
          (ii) PIF3 directly beneficially owns 860,000 shares of Common Stock, constituting 3.6% of the outstanding shares of Common Stock;
          (iii) PIF4 directly beneficially owns 940,000 shares of Common Stock constituting 4.0% of the outstanding shares of Common Stock;
          (iv) Dalal Street has beneficial ownership of 1,960,000 shares of Common Stock constituting 8.4% of the outstanding shares of Common Stock, which amount includes all of the shares of Common Stock beneficially owned by the PIF Funds (on account of its position as the sole investment manager thereof) and 30,000 shares beneficially owned directly by Dalal Street;
          (v) Dakshana has beneficial ownership of 40,000 shares of Common Stock constituting less than one-tenth of 1% of the outstanding shares of Common Stock; and
          (vi) Mr. Pabrai has beneficial ownership of 2,000,000 shares of Common Stock constituting 8.5% of the outstanding shares of Common Stock, which amount includes all of the Common Shares directly owned by the PIF Funds (on account of his position as the sole executive officer and manager of Dalal Street, which is the sole investment manager of each of the PIF Funds), Dalal Street (on account of his position as the sole executive officer and manager thereof) and Dakshana (on account of his position as the founder, catalyst and trustee thereof).
     Dalal Street disclaims beneficial ownership of any shares owned by the PIF Funds, except to the extent of its pecuniary interest therein. Mr. Pabrai disclaims beneficial ownership

 


 

CUSIP No. 247918105   Page 9 of 12
of any shares (i) owned by the PIF Funds, except to the extent of Dalal Street’s pecuniary interest therein, or (ii) owned by Dakshana.
     (b) Mr. Pabrai may be deemed to have shared power to direct the voting and disposition of the 2,000,000 shares of Common Stock owned by the Reporting Persons. Each of the Reporting Persons may be deemed to have shared power to direct the voting and disposition of the shares of Common Stock owned by it, as reflected in the responses to part (a) of this Item 5.
     (c) Since the filing of the Schedule 13D, the Reporting Persons have sold the following shares of Common Stock at the following per share prices, in brokers transactions effected on the open market:
                     
Reporting Person   Date   Shares   Per share Price
 
                   
PIF2
  12/6/07     1,402,000     $ .2601  
PIF4
  12/6/07     2,107,000     $ .1654  
Dalal Street
  12/7/07     53,000     $ .2007  
Harina Kapoor
  12/7/07     54,000     $ .1803  
Mohnish Pabrai
  12/7/07     50,000     $ .18  
PIF3
  12/11/07     160,001     $ .22  
PIF3
  12/12/07     883,999     $ .1245  
     (d) The limited partners of (or investors in) each of the PIF Funds participating in the investments described herein have the right to participate in the receipt of dividends from, or proceeds from the sale of, the shares of Common Stock owned by the respective PIF Funds in accordance with their respective ownership interests in their respective funds.
     (e) Not applicable.
Item 7.   Material to Be Filed as Exhibits
     Exhibit A — Joint Filing Agreement, dated as of December 14, 2007, by and among the Reporting Persons.

 


 

CUSIP No. 247918105   Page 10 of 12
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: December 14, 2007
         
THE PABRAI INVESTMENT FUND II, L.P.
 
 
By:   Dalal Street, LLC, Its General Partner    
 
  By:   /s/ Mohnish Pabrai  
    Mohnish Pabrai, Chief Executive Officer   
       
 
PABRAI INVESTMENT FUND 3, LTD.
 
 
  By:   /s/ Mohnish Pabrai  
    Mohnish Pabrai, President   
       
 
THE PABRAI INVESTMENT FUND IV, L.P.
 
 
  By:   Dalal Street, LLC, Its General Partner    
 
  By:   /s/ Mohnish Pabrai    
    Mohnish Pabrai, Chief Executive Officer   
       
 
DALAL STREET, LLC
 
 
  By:   /s/ Mohnish Pabrai  
    Mohnish Pabrai, Chief Executive Officer   
       
 
THE DAKSHANA FOUNDATION
 
 
  By:   /s/ Mohnish Pabrai  
    Mohnish Pabrai, Trustee   
       
 
/s/ Harina Kapoor
Harina Kapoor  
     
 
/s/ Mohnish Pabrai
Mohnish Pabrai  
     

 


 

         
CUSIP No. 247918105   Page 11 of 12
EXHIBIT INDEX
     
EXHIBIT   DESCRIPTION
 
   
EXHIBIT A
  JOINT REPORTING AGREEMENT

 


 

CUSIP No. 247918105   Page 12 of 12
EXHIBIT A
JOINT REPORTING AGREEMENT
This will confirm the agreement by and among the undersigned that the Schedule 13D filed on or about this date with respect to the beneficial ownership of the undersigned of shares of Delta Financial Corporation is being filed on behalf of each of the parties named below.
Dated: December 14, 2007
           
THE PABRAI INVESTMENT FUND II, L.P.
 
     
  By:   Dalal Street, LLC, Its General Partner    
 
     
    By:   /s/ Mohnish Pabrai   
      Mohnish Pabrai, Chief Executive Officer   
       
       
PABRAI INVESTMENT FUND 3, LTD.
 
     
     
    By:   /s/ Mohnish Pabrai   
      Mohnish Pabrai, President   
       
       
THE PABRAI INVESTMENT FUND IV, L.P.
 
     
  By:   Dalal Street, LLC, Its General Partner    
 
     
    By:   /s/ Mohnish Pabrai   
      Mohnish Pabrai, Chief Executive Officer   
       
       
DALAL STREET, LLC
 
     
     
    By:   /s/ Mohnish Pabrai   
      Mohnish Pabrai, Chief Executive Officer   
       
       
       
THE DAKSHANA FOUNDATION
 
     
     
    By:   /s/ Mohnish Pabrai   
      Mohnish Pabrai, Trustee   
       
       
 
 
/s/ Harina Kapoor 
Harina Kapoor  
     
 
/s/ Mohnish Pabrai 
Mohnish Pabrai  
     

 

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