This has actually stopped happening on my server, after an upgrade by my
hosting provider.

For those still affected by the issue, I have created a PPA that contains the 
latest oneiric package, with just this one upstream bugfix added:
https://code.launchpad.net/~jammy/+archive/upstart.fix-880049

Its waiting to build on launchpad now, packages should be available in a
few hours.

** Branch linked: lp:~jammy/ubuntu/oneiric/upstart/upstart.fix-880049

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https://bugs.launchpad.net/bugs/880049

Title:
  100% CPU usage in init if /dev/console is not available

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