With a fresh install of 16.04 on HP 4430s laptop, I have this same issue. BT 
worked before I setup my wireless network, and then didn't. I also can confirm 
the workaround above of shutting down the laptop, removing power(battery as 
well), seems to correct the issue. Fixes tried:
1. uninstalled and reinstalled bluetooth
2. echo "options ath9k btcoex_enable=1" | sudo tee /etc/modprobe.d/ath9k.conf
3. installed mainline kernel 4.6.3-040603-generic via dpkg -i
4. tried workaround above--seemed to correct, but for how long?

Steps to reproduce:
1. put laptop into suspended mode
2. Bluetooth icon shows on status bar, but will not reconnect
3. rebooted--> BT still Broken
4. shutdown laptop and removed all power
5. BT corrected

Attached BT_Issue_corrected.txt which shows when issue is occrring and when 
working(working part on bottom:
1. While the issue was occurring created BT_Issue.txt--> hciconfig > 
BT_Issue.txt, lsmod >> BT_Issue.txt, lsusb, dmesg | grep -i blue, lspci
2. While the issue was corrected created BT_Issue_corrected.txt--> hciconfig > 
BT_Issue.txt, lsmod >> BT_Issue.txt, lsusb >> BT_Issue.txt, dmesg | grep -i 
blue >> BT_Issue.txt, lspci >> BT_Issue.txt

** Attachment added: "hciconfig > BT_Issue.txt, lsmod >> BT_Issue.txt, lsusb, 
dmesg | grep -i blue, lspci"
   
https://bugs.launchpad.net/ubuntu/+source/bluez/+bug/1541392/+attachment/4697261/+files/BT_Issue_corrected.txt

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https://bugs.launchpad.net/bugs/1541392

Title:
  AR3011 Bluetooth not starting after being stoped (but detected)

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