You can fill and sand the holes before repainting. I used to do this to get the hairline right on the old 12” toy biz Gandalf. I’ll likely do that and also run some paint through the hair to make it greasier. The hat might be salvageable too, with a little ironing, painting, water and starch. Overall everything I see is very workable. I’ll share photos once I have it.
They're not the same penguins. I used the Horizon kit to make a custom back in the day (link to my old site in the banner if you’re curious), and the penguins were different for sure. I wish this sculpt were even half as good as that old kit. I wonder if cutting the hat off the kit and dremeling it would work for this figure…