Turns out adding jvm option -XX:+AlwaysLockClassLoader appears to resolve
issue.

>From http://docs.oracle.com/javase/7/docs/technotes/guides/lang/cl-mt.html

It says:
Troubleshooting
If your product ships and appears to have problems due to incomplete
handling of critical sections, you can use a new VM flag
-XX:+AlwaysLockClassLoader. This flag reverts to locking the class loader
lock before invoking your custom class loader's findClass() or loadClass()
method, even for class loaders that register as parallel capable.

The correct fix however would be to follow the guidelines in that post.



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