I removed the workaround in logind.conf and as expected suspend stopped working. It does work from panel menu.
$ systemd-inhibit Who: Telepathy (UID 1000/bruno, PID 2482/mission-control) What: shutdown:sleep Why: Disconnecting IM accounts before suspend/shutdown... Mode: delay Who: bruno (UID 1000/bruno, PID 2070/unity-settings-) What: sleep Why: GNOME needs to lock the screen Mode: delay Who: bruno (UID 1000/bruno, PID 2070/unity-settings-) What: handle-power-key:handle-suspend-key:handle-hibernate-key Why: GNOME handling keypresses Mode: block Who: NetworkManager (UID 0/root, PID 904/NetworkManager) What: sleep Why: NetworkManager needs to turn off networks Mode: delay 4 inhibitors listed. ** Attachment added: "I cleaned up the log up to the logind service restart, so as not to have so many unnecessary entries. If a complete log is needed, I'll reboot and do it again." https://bugs.launchpad.net/ubuntu/+source/systemd/+bug/1574120/+attachment/4648369/+files/journal.txt -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/1574120 Title: Notebook doesn't suspend when lid is closed after update to 16.04 To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/systemd/+bug/1574120/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs