Thank you, Phoebe.  That is pretty much what I did.  Only difference was, I just entered the Interest Shortfall as an OID interest adjustment.  Has the same effect without having to create a separate Interest item.

I've been doing this for almost 30 years and I think this may have been the first time I have seen an Interest Shortfall on Contingent Debt reported on a 1099.

Learn something new everyday.