Kernel Panic on OS X when rebuilding outlook database identity after a restore from Time Machine

I was having continuous Kernel Panic restart during "rebuilding Identity" after I recovered the Macbook Pro using Time Machine.

The only way I figured to fix this issue is to follow the following steps

1- Close all office applications using "Force Quit" in apple menu

2- Press "option" key while clicking on "Go" menu

3- Go to "Library"

4- Go to "Preferences" directory

5- drag every com.microsoft.xxx file to desktop

6- click on outlook on the dock and rebuild identity 

This seemed to fix the Kernel Panic restart