Seems to be FIXED, tested linux-image-4.4.0-62-generic/xenial-proposed.

I could not reproduce the hang with the version 4.4.0-62.83 from xenial-
proposed, so I assume the issue has been fixed. I confirm that I am able
to boot nested VMs with the kernel above from 4.4 release.

root@bug-147569:~# uname -a
Linux bug-147569 4.4.0-62-generic #83-Ubuntu SMP Wed Jan 18 14:09:19 UTC 2017 
ppc64le ppc64le ppc64le GNU/Linux

--
Installed with:
 apt-get install linux-image-4.4.0-62-generic/xenial-proposed
linux-image-4.4.0-62-generic is already the newest version (4.4.0-62.83).
Selected version '4.4.0-62.83' (Ubuntu:16.04/xenial-proposed [ppc64el]) for 
'linux-image-4.4.0-62-generic'

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

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https://bugs.launchpad.net/bugs/1634129

Title:
  Couldn't emulate instruction 0x7813427c

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