boot fails with exec of init failed and kernel panic

Issue

• System fails to boot up with errors

   exec of init (/sbin/init) failed!!!: 2
   umount /initrd/dev failed: 2
   kernel panic - not syncing: Attempted to kill init!
  

• Running rescue mode and system partition is mounted on /mnt/sysimage but

chroot to /mnt/sysimage failes with

 cannot run command '/bin/sh' : no such file or directory

• There is not /bin directory under /mnt/sysimage.