I have just been recovering a system that failed to upgrade from 14.04
to 16.04 with the same error as the OP. The solution was to chroot in
from a liveCD following the Update Failure instructions.

After an apt-get update, apt-get upgrade, apt-get dist-upgrade and apt-
get -f install the system could be booted normally, albeit without a
working X-environment and package dependancy issues.

The package dependancy issues (mostly in Latex-related packages, with it
trying to both upgrade and install tex-common as part of an "apt-get -f
install", and libboost) were resolved by removing the offending packages
and their dependancies with "dpkg --remove --force-remove-reinstreq
<packagename>".

apt-get update and upgrade then worked and the system booted with a
working X-Environment.

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https://bugs.launchpad.net/bugs/1652462

Title:
  No init after do-release-upgrade from 14.04 to 16.04 (kernel panic)

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