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 - The Nuts and Bolts of Fasteners - Part 2 - by Curtis Von Fange. In our previous article we discussed capscrews, bolts, and nuts along with their relative hardness and thread sizes. In this segment we will finish up on our fasteners and then work with ways to keep them from loosening up in the field. Capscrews, bolts and nuts are not the only means of holding two parts together. When dealing with thinner metals like sheet tin, a long bolt and
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