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 - New Life for an Old Allis - by Tyler Woods. My friend Jon, has an old '39 Allis Chalmers B. He thought it a marginal tractor that had long since served its time. She smoked terribly and never had much power but he couldn't afford another so he was limping along with what he had. Jon's Allis has a small front loader and though it doesn't carry much, it serves his needs. It was the hard starting and low power that made him think it was time to replace the old girl. Jon called me to help him discover why his tractor wouldn't start
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