1. the bug reporter is using a powervm partition. KVM cannot be used
there. This is not a KVM bug.

PowerVM mode is an LPAR. It is not a kvm instance trying to run an KVM
within. This was also working in 14.04 without issue and is being asked
of us from IBM to certify

2. the xenial cloud images have an outdated 4.2 kernel which doesn't
boot in kvm on powernv. A workaround is to use the isos which do boot.
This is a cloud-images bug.

All the Xenial daily images i've been using from MAAS deployments have
been the 4.4 kernel which is still not working.

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https://bugs.launchpad.net/bugs/1563887

Title:
  qemu-system-ppc64 freezes on starting image on ppc64le

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