As you mentioned I enabled FPU in Fiasco kernel and re-compiled, again I have the same issue. I couldn't solve the previous issue. The issue that you mentioned, I disabled FPU in the l4linux configuration, that's why this wasn't a solution. So now, as FPU is in Fiasco enabled, I don't receive anymore this failure message, however, the following issue is still available "sh not tainted". I am not sure but It can be an issue in the file system (ramdisk-arm.rd). Do you have a stable ramdisk file system for arm, otherwise I will compile new file system.
RAMDISK: ext2 filesystem found at block 0
RAMDISK: Loading 3072KiB [1 disk] into ram disk... done.
EXT4-fs (ram0): couldn't mount as ext3 due to feature incompatibilities
EXT4-fs (ram0): mounting ext2 file system using the ext4 subsystem
EXT4-fs (ram0): mounted filesystem without journal. Opts: (null)
VFS: Mounted root (ext2 filesystem) readonly on device 1:0.
Freeing unused kernel memory: 116K (02307000 - 02324000)
Kernel panic - not syncing: Attempted to kill init! exitcode=0x0000000b
CPU: 0 PID: 1 Comm: sh Not tainted 3.16.0-l4-g5d0896b #8
[<0200c9c8>] (unwind_backtrace) from [<020055e8>] (show_stack+0x10/0x14)
[<020055e8>] (show_stack) from [<0223f704>] (panic+0x7c/0x1e0)
[<0223f704>] (panic) from [<0201e6a8>] (do_exit+0x708/0x7a0)
[<0201e6a8>] (do_exit) from [<0201e80c>] (do_group_exit+0x3c/0x9c)
[<0201e80c>] (do_group_exit) from [<02028390>] (get_signal_to_deliver+0x148/0x490)
[<02028390>] (get_signal_to_deliver) from [<02006be8>] (do_signal+0x114/0x448)
[<02006be8>] (do_signal) from [<0200a210>] (l4x_vcpu_entry_c+0xa94/0x1da8)
[<0200a210>] (l4x_vcpu_entry_c) from [<001074f0>] (0x1074f0)
---[ end Kernel panic - not syncing: Attempted to kill init! exitcode=0x0000000b
panic: going to sleep forever, bye
l4linux | panic: going to sleep forever, bye
===============================