What was found
DURING CLIMB OUT AT 12,000 FT, A LOUD BANG AND SHUDDER, ENGINE FAILURE EGT IN RED, ENGINE SHUT DOWN IAW QRC RUN. ACFT GROUNDED. INSPECTED NR 1 ENGINE AND FOUND TO HAVE SEVERE DAMAGE, REMOVED NR 1 ENGINE IAW T/C 78471000, REF W/O 262638, INSTALLED NR 1 ENGINE IAW T/C 78471001, ALSO ACCOMPLISHED CONDITIONAL INSPECTION IAW AMM 05-51-59-200-801. NO FURTHER DAMAGE NOTED.