The timing chain broke, the now non-synchronized valves were smashed by
the pistons, some valves bent, ruining their guides, some rocker arms
will need to be replaced the cam shaft(s) may have been broken. Most of
the damage is in the cylinder heads which can be rebuilt or bought as
rebuilt. Metal in the oil pan sounds a lot worse than it is, don't let
that discourage you from fixing this engine.
I've seen $3,200 repair bills for older, 420 V-8s when their chains
broke - but those broke after 120K miles.
For this to occur after only 61K miles is unconscionable, IMHO. Suggest
you call the MBUSA Zone office and discuss it with them adding that you
have all service records.
If M-B doesn't help you, see: www.mercedesengines.net and
www.atk-engines.com for the cost of rebuilt cylinder heads (plus
Still, horrible as it is, it's much cheaper to fix this engine than to
buy another car.