The problem with trying to do any kind of thread repair is getting the hole drilled and tapped straight. With nothing to reference to, it is impossible to use a drill guide, eye-balling it is a gamble at best. (A bad gamble if I'm holding the drill!)
If the pan is accessible the best solution would be to replace it.
If I were going to try repairing it installed, I think (without seeing it) I would pull the Helicoil out, carefully try to drill the straightest hole possible and tap it for taper pipe thread. (Just an FYI, a taper tap only goes part way into the hole, typically leave about 6 threads showing). Reason for using taper pipe, a taper thread hole is more forgiving of being crooked that an Oring or gasket type plug.
To minimize chips, dip the drill and tap in heavy grease to "help" trap the chips, rinse the hole with spray cleaner afterward. Work it with the hole in the downward position.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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