I've the same problem. I've just upgraded my host this morning.

All my VMs (Debian and Ubuntu Server) didn't start anymore.

r...@lucid-server:~# virsh start guest1
error: Failed to start domain guest1
error: monitor socket did not show up.: Connection refused

r...@lucid-server:~# cat /var/log/libvirt/qemu/guest1.log
...
LC_ALL=C 
PATH=/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin:/sbin:/bin:/usr/games 
HOME=/root USER=root LOGNAME=root QEMU_AUDIO_DRV=none /usr/bin/kvm -S -M 
pc-0.12 -enable-kvm -m 512 -smp 2 -name guest1 -uuid 
8b803721-015c-b75e-4971-2df5918b087c -chardev 
socket,id=monitor,path=/var/lib/libvirt/qemu/guest1.monitor,server,nowait 
-monitor chardev:monitor -localtime -no-acpi -boot c -drive 
file=/var/img/guest1.img,if=scsi,index=0,boot=on -drive 
file=/root/iso/lucid-server-amd64.iso,if=ide,media=cdrom,index=2 -net 
nic,macaddr=53:54:00:d3:98:e0,vlan=0,name=nic.0 -net 
tap,fd=55,vlan=0,name=tap.0 -chardev pty,id=serial0 -serial chardev:serial0 
-parallel none -usb -vnc *:0 -vga cirrus
char device redirected to /dev/pts/3
qemu: could not load PC BIOS 'bios.bin'
...

-- 
kvm VMs don't start: qemu: could not load PC BIOS 'bios.bin'
https://bugs.launchpad.net/bugs/545004
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