Fixed in Xenial. 
I just installed the package from xenial-proposed, the problem seems to be 
fixed. It brings Ubuntu Installer GUI and starts the installation process. I 
used the same host and guest as my original post (Ubuntu server 14.04.4 and 
KUbuntu 16.04.2 respectively). 
Thanks guys :)

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https://bugs.launchpad.net/bugs/1634304

Title:
  Unable to complete install: 'Couldn't find hvm kernel for Ubuntu tree

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