If you are using CentOS 6.4 and after doing a yum update get the error as seen below:

and your server (VM) does not come up then you can do as below:
1. Access your server using the console if it’s a VM.
2. And then boot into the last working kernel.
3. After you have logged in your system using the old kernel, run the “yum reinstall kernel” command:
e.g. # yum reinstall kernel-2.6.32-358.18.1.e16.x86_64
4. Now reboot.
And voila, your system should now be up and running.
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