JPMorgan’s Risky, 5-Day Dash to Help Warner Bros. Split in Two

The bankers from JPMorgan Chase & Co. knew the deal they were cooking up would face fierce opposition.

The plan could leave creditors of Warner Bros. Discovery Inc. with billions less than they were owed, despite the fact that the notes carried an investment grade rating that was supposed to indicate they were safe from this kind of “haircut.” The goal was to help Warner Bros. split itself in two despite its massive debt load.

To head off resistance, the bankers came up with a novel strategy to force an agreement. They would give creditors just five days to ...