I had a frame powdercoated at Armourtex a few weeks ago and had a similar, though from what it sounds, less severe problem. Although I could get the adjuster bolt out the stem wouldn't budge, I didn't try and force it so I don't know how badly it was actually stuck in but I took it to Armourtex and they removed the stem, headset and bottom bracket (which was also completely stuck) for £10 extra which seems pretty reasonable.
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I had a frame powdercoated at Armourtex a few weeks ago and had a similar, though from what it sounds, less severe problem. Although I could get the adjuster bolt out the stem wouldn't budge, I didn't try and force it so I don't know how badly it was actually stuck in but I took it to Armourtex and they removed the stem, headset and bottom bracket (which was also completely stuck) for £10 extra which seems pretty reasonable.