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OT: Beemer beyond help?



My housemate has a 93 535i that overheated. Basically, a hose blew and the headgasket is shot and the head is very warped. The bad part though is that it's been sitting for quite a few months and apparently it got so hot the oil turned into a sludgy goo stuff. Is this engine beyond help or can it be saved? I was thinking a head rebuild and a new bottom end might do it, but is there too much damage for that? This would be done by a shop, as neither one of us has the time, tools or experience to do the job.
 
TIA,
Dan


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