rhnreg_ks fails with an error : "Failed channel subscription" in rhn_server_xmlrpc.log on satellite server

Issue

Customer using following command to register a system on satellite server.

rhnreg_ks --server=http://satellite.example.com/XMLRPC --activationkey=1-rhel5-x86_64-login-blr --force -vvvvv

Currently its failing with the errors below :

Server side, in /var/log/rhn/rhn_server_xmlrpc.log:

2013/10/18 19:22:50 -07:00 2330 209.68.166.219: xmlrpc/registration.welcome_message('lang: None',)
2013/10/18 19:22:52 -07:00 2179 209.68.166.219: xmlrpc/registration.create_system("token = '1-rhel5-x86_64-login-blr'", '5Client', 'x86_64-redhat-linux')
2013/10/18 19:22:52 -07:00 2179 209.68.166.219: rhnServer/server_token.process_token(1000010773, 'enterprise_entitled,provisioning_entitled')
2013/10/18 19:22:52 -07:00 2179 209.68.166.219: rhnServer/server_token.token_channels('ERROR', 'Failed channel subscription', 1000010773, 104, 'rhel-x86_64-client-workstation-5', 'RHEL Desktop Workstation (v. 5 for 64-bit x86_64)')
2013/10/18 19:22:52 -07:00 2179 209.68.166.219: rhnServer/server_token.token_channels('ERROR', 'Failed channel subscription', 1000010773, 103, 'rhel-x86_64-client-supplementary-5', 'RHEL Desktop Supplementary (v. 5 for 64-bit x86_64)')
2013/10/18 19:22:52 -07:00 2179 209.68.166.219: rhnServer/server_token.token_channels('ERROR', 'Failed channel subscription', 1000010773, 109, 'rhn-tools-rhel-x86_64-client-5', 'Red Hat Network Tools for RHEL Client (v.5 64-bit x86_64)')
2013/10/18 19:22:52 -07:00 2179 209.68.166.219: rhnServer/server_token.token_channels('ERROR', 'Failed channel subscription', 1000010773, 111, 'rhel-x86_64-client-pmcrpms-5', 'RHEL5 PMC Client Custom RPMs')

Extra information about this error:
SQL Error generated: (99999, 'ERROR:  current transaction is aborted, commands ignored until end of transaction block', '', InternalError('current transaction is aborted, commands ignored until end of transaction block\n',))

Exception Handler Information
Traceback (most recent call last):
  File "/usr/lib/python2.6/site-packages/spacewalk/server/apacheRequest.py", line 123, in call_function
    response = apply(func, params)
  File "/usr/share/rhn/server/handlers/xmlrpc/registration.py", line 504, in new_system
    architecture, data)
  File "/usr/share/rhn/server/handlers/xmlrpc/registration.py", line 408, in create_system
    newserv.use_token()
  File "/usr/lib/python2.6/site-packages/spacewalk/server/rhnServer/server_class.py", line 346, in use_token
    tokens_obj, self.virt_type)
  File "/usr/lib/python2.6/site-packages/spacewalk/server/rhnServer/server_token.py", line 1041, in process_token
    history["groups"] = token_server_groups(server_id, tokens_obj)
  File "/usr/lib/python2.6/site-packages/spacewalk/server/rhnServer/server_token.py", line 185, in token_server_groups
    h.execute(token_id=token_id)
  File "/usr/lib/python2.6/site-packages/spacewalk/server/rhnSQL/sql_base.py", line 163, in execute
    return apply(self._execute_wrapper, (self._execute, ) + p, kw)
  File "/usr/lib/python2.6/site-packages/spacewalk/server/rhnSQL/driver_postgresql.py", line 279, in _execute_wrapper
    raise sql_base.SQLSchemaError(error_code, e.pgerror, e)
SQLSchemaError: (99999, 'ERROR:  current transaction is aborted, commands ignored until end of transaction block', '', InternalError('current transaction is aborted, commands ignored until end of transaction block\n',))