Looks to me like the
boat had a hard grounding. If you clean all the rust out of there, you'll probably find more signs of damage and and
water ingress. Look with great suspicion of problems at the area around the aft end of the
keel, too.
Most things wrong with old
boats can be fixed, but the question is do you want to do it? A proper
repair for that
boat will involve a lot of
fiberglass sanding, and re-laminating with
fiberglass and
epoxy; it may need stringers glassed in, too. But you have to start the
repair process and then see how much is needed. [Long story, but we had a similar problem on a former boat, costs included the exterior repair, which did not hold; a re-do of that repair, then my Jim cutting out old stringers,
Epoxy products, lots of fiberglass for the
interior repair; and
sanding and grinding fiberglass below decks was not adequately contained by the painters drop cloths we taped up, so the cleanup was a bear.]
You will need a suit to keep the fiberglass dust off your skin, and all the special little tools for working with the resins. You should also use a respirator, so as to avoid the epoxy fumes, otherwise you risk epoxy-caused emphysema.
I wouldn't risk that particular boat, but I wouldn't like the boat turtling if the
keel fell off.
Ann