I have verified the proposed kernel for xenial (4.4.0-36-generic)
It is working without any issue while launching/starting/stopping the 
containers. 

Thanks!
Rahul C

** Tags removed: verification-needed-xenial
** Tags added: verification-done-xenial

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https://bugs.launchpad.net/bugs/1607374

Title:
  Cannot mount proc in unprivileged containers if /proc/xen is mounted

Status in linux package in Ubuntu:
  Fix Committed
Status in linux source package in Xenial:
  Fix Committed

Bug description:
  SRU Justification

  Impact: The xenfs filesystem is traditionally mounted at /proc/xen in
  xen guests. This directory doesn't use the special "create proc
  mountpoint" interface and thus fails the permanently empty test in
  fs_fully_visible(). This causes mounting of proc to fail in user
  namespace containers.

  Fix: Use the special proc interface to make this a "permanently empty"
  directory.

  Regression potential: This change will make it impossible to create
  files within /proc/xen, but since the directory is only ever used as a
  mount point this should not cause any problems.

  Original bug report and testing results can be found at
  https://github.com/lxc/lxd/issues/2238.

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