Years and years ago I had the same problem while working on a "curb find" bike.
I ended up having to thread the bearing cones in the hub away from the jammed nut, effectively offsetting the hub away from the damaged axle end.
Here's how you do it: Loosen up the good axle nut, loosen up both cone lock nuts and thread the axle out from the jammed up side enough to slide the wheel out of the dropouts. You will have to sort of walk the axle out, jumping from nut to nut as they tighten up on you.
A pain in the but to do but at least the dropout and hub did not get buggered.
You need cone wrenches to do this.