Thanks all. I have ordered a new cat for the 2.5 specifically. Didn't really want that, but my sources couldn't provide and Ebay is too expensive (about same price as new aftermarket).
Next step is to get the old thing off. The joint to the exhaust manifold is welded up, see pictures below. So my idea is to grind the old cat pipe off near the joint. That will allow me better access to the three holes so I can try and drill these straight out. I did try a little part with a small diameter drill, but it really didn't want to start cutting. Any idea on my plan or better proposals?
And just to see the damage to the cat, the arrow points to where the whole tapered section is dented in. It also might have a little hole, but I didn't try to push it through.