CJ Skid's captive nut spun

[SAR Jeeper]

My skid has been looking kinda bad since I dropped it when I raised the Jeep. The TC Skid Lowering kit that came with my BDS was basically some round spacers. I purchased some 1 X 1 steel and cut to size. When removing one of the bolts, it just kept spinning. I cut a 1.25 inch round hole in the side of my frame to get at the captive nut, and to put a new nut in.

I do not have a welder to weld the new nut in place, nor to weld the hole shut. How badly am I compromising my frame!? The hole is just forward the body mount.

Thanks