I've finished restoration of the Heathkit HW-16 transceiver. It needed the power supply caps and resistors replaced (a couple of the resistors were open). A cap kit from HaySeed HamFest Co. did the trick.
The 6GE5 final tube also had an open filament and needed to be replaced. The last problem was an open RF choke which I was able to fix. After doing the alignment, the receive and transmit functions are working fine. I even hooked it up to my HG-10 and confirmed that it works using an external VFO.
The only remaining task is to possibly get a vinyl overlay to replace the front panel. Hayseed Hamfest is not currently manufacturing them but is planning to resume soon.
I'm currently making a YouTube video that will show the unit operating and discuss the restoration in more details. I'll post a link here when it is available. Update: The Youtube video can now be found here.