Issue was escalated to Xen-devel mailing list.  Libvirt-xen driver for nova has 
not been tested with Neutron.
Details and  xen-hotplug.log  here 
http://lists.xen.org/archives/html/xen-devel/2015-04/msg01856.html

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https://bugs.launchpad.net/bugs/1439645

Title:
  nova can't schedule instance  with libvirt-xen driver

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