LMS SX2 Spindle Lock Stripped

[FunkedOut]

Been enjoying my LMS SX2 for a few months now.
Since day 1, the spindle lock bar and hole has been a loose fit; plenty of play in there when taking a wrench to the draw bar for loosening collets.

Last night, went to loosen the collet and the spindle lock finally egged out to the point where it spits the bar out and I can't loosen the drawbar.
For those that haven't seen the LMS SX2, the hole for the spindle lock is on the exposed portion of the spindle, below the head casting.

How do I fix this?
So far I came up with:

1) remove spindle and make a new hole on a mill or drill press. problem here is i read it is a major pain to remove the spindle. I have to buy or make some tools for the job too. I have no lathe and this is my only mill.

2) hand drill it in place!?!?!? results can't be good here. what if i try to enlarge the egged out hole and use a larger bar?

suggestions greatly appreciated.

[AiR_GuNNeR]

I'd lose the hole all together and simply buy a HF butterfly impact wrench. You won't need the hole any more for loosening or tightening.