Was able to test the proposed package and verify the issue is resolved.
Test:

1)
- Boot a fresh trusty VM using libvirt
- Install cloud-init
- Reboot
SUCCESS

2)
- Shutdown
- Using libvirt, add a serial device / pty to the domain
- Boot same VM
FAIL (boot hangs)

- Shutdown
- Remove serial device
- Boot same VM, boot succeeds
- Install proposed cloud-init 0.7.5-0ubuntu1.1
- Repeat boot with and without serial port attached and boot succeeds in both 
case.

Thanks for the fix.

** Tags removed: verification-needed
** Tags added: verification-done

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https://bugs.launchpad.net/bugs/1316475

Title:
  [SRU] CloudSigma DS for causes hangs when serial console present

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