Here's the latest.  
The engine went up to Flat 6 Innovations, where it was torn down.  This bearing had been failing slowly and let debris into the engine.  
This upped the total repair bill to $20k and the owner of the car called it quits.
Game over.
He told me today "The sad thing is that I know of two other (M96) cars sitting in garages with blown engines right now, and the owners don't know what to do with them.  Mine makes number three, that I know of in this area."
