Oil turned into hard flaky coating

Vehicle sounded like it needed a new timing chain (as if the tensioner went and the chain was just slapping around in the case).

Removed top cover to inspect chain to confirm it was loose, it was solid and tight, but there was no oil around the camshafts at all, just a thick black flaky coating covering everything. It's mostly dry and breaks up like charcoal (I have enclosed a picture) I have never seen anything like this in all my years. Does anyone have any ideas what happened and is this engine savable?

Thanks for any help.