along two edges of the screen are driver chips that, well... drive signals into the panel. my guess is that one of these drivers has gone (very) kaput, is drawing a great deal of excess current, and creating a heated area that is affecting the surrounding surface of the LCD panel.
this being the case, the TV is not repairable.
now if one of the kids 'accidentally' knocked over the TV and that cracked the screen, then it may be covered by your friend's house insurance...
cheers,
rob ;-)