Personally I don't think it's that no one had...

Personally I don't think it's that no one had confidence in the fair value model (after all no qualified audit opinions or otherwise there). Rather amortised cost, due to its inherent difference on discount rate, has likely driven out a different earnings profile. Whether ultimate cash flow projections were (are) optimistic, conservative or about right only time would really tell. They did hit close to their cash liquidations after all (but would want to know period end inventory sale information to make an informed assessment). IMO the key issue here is reputation and credibility, which has taken a hit on all sides as what was said doesn't appear to be what's ended up being the case. Banks for one tend not to like that.

On your last point you sound like you are suggesting fraud - ie disclosing cash received from debt draws as liquidations, which auditors haven't picked up. If that's what youre suggesting then not sure there is a basis for that and personally would be careful making such statements.

DYOR