It's made for recessed Allen-bolt brakes, I still can't tell if it's been tweaked so that it points the caliper upwards. Sorry to hear that the BB threads are buggered, but a good LBS should be able to either clean them up to be usable, or help you with the next steps: either mill and re-tap for Italian threading or fit a Mavic "threadless" BB unit. Good luck, I still think it's a frame worth spending some sweat and $$ on.