I'm also seeing this with several guest machines that I moved to a
different host. I change the networking config and then this started to
occur. I removed two NICs and added a new one. It currently has only one
NIC. This was needed for virt-manager to associate the guest with the
proper network on the host. After getting the message I modified
/etc/networking/interfaces and /etc/udev/rules.d/70-persistent-net.rules
to get my NIC working as expected, but the errors still show up.

'/etc/init.d/networking restart' works

'service networking restart' does not work. It simply fails with the
"Unknown instance:" message.

If I run 'initctl list | grep network' I see only the current
interfaces, but I see a line that says "networking stop/waiting" so I
think this confirms Watte's assumption that those results were a
symptom, not cause.

** Changed in: sysvinit (Ubuntu)
       Status: New => Confirmed

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https://bugs.launchpad.net/bugs/440179

Title:
  service fails to start/stop/restart networking daemon

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