Will
Keep it, refurbish it with bits from the auction if the paint is OK. If not keep it as it is until you get some kind of deal with the borrower then do the fixie conversion (or a flip/flop with fixed one side and single free wheel on the other), spray it black and
a) put winter tyres on it. Ride it for secret training any time of year or
b) put sprints and tubs on it and use it for roller racing without brakes etc
have fun !
Tim