RHEL6 - Boot hangs with error "/dev/fd/8 Bad fd number"

Issue

• Boot of the machine hangs after printing the following messages on the console:

  EXT4-fs (dm-0): mounted filesystem with ordered data mode. Opts: 
  dracut: Mounted root filesystem /dev/mapper/vg_rhel68-lv_root
  dracut: Loading SELinux policy
  type=1404 audit(1494575751.294:2): enforcing=1 old_enforcing=0 auid=4294967295 ses=4294967295
  type=1403 audit(1494575752.010:3): policy loaded auid=4294967295 ses=4294967295
  dracut: 
  dracut: Switching root
  /dev/fd/8: 8: /dev/fd/8: 1: Syntax error: Bad fd number
  Syntax error: Bad fd number
  init: readahead main process (426) terminated with status 2
  init: readahead-collector main process (424) terminated with status 2
  init: rcS pre-start process (425) terminated with status 2
  init: readahead-collector post-stop process (427) terminated with status 2
  /dev/fd/8: 11: Syntax error: Bad fd number
  init: rcS post-stop process (428) terminated with status 2
  init: readahead-disable-services main process (430) terminated with status 2
  init: ck-log-system-start main process (429) terminated with status 1
  

• Boot doesn't reach the console prompt

• No service get started, machine is unreachable: no ping, no ssh connectivity