This bug was fixed in the package util-linux - 2.20.1-5.1ubuntu20.9

---------------
util-linux (2.20.1-5.1ubuntu20.9) trusty; urgency=medium

  * mount/lomount.c: Query /dev/loop-control for next free loopback device.
    (LP: #1640823)

 -- Thomas Voß <[email protected]>  Tue, 15 Nov 2016 09:52:37
+0100

** Changed in: util-linux (Ubuntu Trusty)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/1640823

Title:
  [trusty] mount -o loop is limited to 8 loop devices

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