In order of frustration:
Penetrene/PBBlaster and let it soak overnight
use the correct size screwdriver applying loads of force downwards
Try tightening it slightly as well as loosening it
Judicious taps with a hammer on the end of the screwdriver as you try to undo it
Dremel the head so that you can get a flat screwdriver into it
More Penetrene
Dremel the head off so you can get the strap off
Apply heat to the thread
Vice grips on the thread, closely followed by...
Snap the rest of the thread off flush with the bolt
Swear loudly
Dremel the rest of the thread flat so you can then...
Drill a small hole through the bolt
Ezy-out
Snap the ezy-out
Cut the kn nut out altogether and glass a new one in