What happened
The FAA’s narrative, in sentence case. The FAA writes it in capitals and removes private details.
(-23) Aircraft was a registered participant in the abq balloon fiesta and on an "endurance competition flight." At approx. 12,000 ft the aircraft was struck by lightning which initiated failures in load tapes and gores of the envelope. There was corresponding "welding" or fusing of most metal to metal points of contact throughout the aircraft. The anti collision light system was completely vaporized and several support cables nearly completely arced through. The basket had corresponding burn marks in areas adjacent to cabling. Damage to the basket included large amounts of broken wicker which appeared to be from impact at a substantial rate of descent. Both occupants sustained broken limbs. Repair costs to the entire aircraft were estimated to exceed the replacement value of the entire system and thus deemed destroyed. Repair station evaluating this damage also had very serious "safety reservations" in any attempt to return this system to service.
As the FAA filed it
(-23) AIRCRAFT WAS A REGISTERED PARTICIPANT IN THE ABQ BALLOON FIESTA AND ON AN "ENDURANCE COMPETITION FLIGHT." AT APPROX. 12,000 FT THE AIRCRAFT WAS STRUCK BY LIGHTNING WHICH INITIATED FAILURES IN LOAD TAPES AND GORES OF THE ENVELOPE. THERE WAS CORRESPONDING "WELDING" OR FUSING OF MOST METAL TO METAL POINTS OF CONTACT THROUGHOUT THE AIRCRAFT. THE ANTI COLLISION LIGHT SYSTEM WAS COMPLETELY VAPORIZED AND SEVERAL SUPPORT CABLES NEARLY COMPLETELY ARCED THROUGH. THE BASKET HAD CORRESPONDING BURN MARKS IN AREAS ADJACENT TO CABLING. DAMAGE TO THE BASKET INCLUDED LARGE AMOUNTS OF BROKEN WICKER WHICH APPEARED TO BE FROM IMPACT AT A SUBSTANTIAL RATE OF DESCENT. BOTH OCCUPANTS SUSTAINED BROKEN LIMBS. REPAIR COSTS TO THE ENTIRE AIRCRAFT WERE ESTIMATED TO EXCEED THE REPLACEMENT VALUE OF THE ENTIRE SYSTEM AND THUS DEEMED DESTROYED. REPAIR STATION EVALUATING THIS DAMAGE ALSO HAD VERY SERIOUS "SAFETY RESERVATIONS" IN ANY ATTEMPT TO RETURN THIS SYSTEM TO SERVICE.