Comment 4 for bug 1701873

As a workaround - I read that Ubuntu 16.04 new installs now get linux kernel 4.8 but even a dist-upgrade of an exiting system leaves you with 16.04.2 still with the 4.4 kernel. I was able to upgrade to the 4.8.0-58-generic kernel which was able to boot successfully by using the command (while booted to the older 4.4.0-81 kernel)

sudo apt install --install-recommends xserver-xorg-hwe-16.04