Dear all, turns out, my system was suffering from completely different
bug with similar symptoms. It was a problem with the motherboard BIOS. I
upgraded the BIOS and the bug went away. I'm taking myself off the
mailing list for this bug.

If you're suffering from a similar issue even after the fix in Xenial,
try upgrading your BIOS. If that doesn't help and you're on a desktop,
try clearing CMOS with the jumper (not through the menu) after the
successful BIOS upgrade.

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https://bugs.launchpad.net/bugs/1464917

Title:
  reboot hangs at 'Reached target Shutdown'

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