I had the same issue on my daughter's computer. Booting into the recovery console and attempting a repair did not solve the issue. We took her MacBook Pro to the Apple store and they could not recover it either and recommended starting from scratch. Unfortunately, my daughter did not have a backup (lesson learned) and had a critical file (a school project) that we needed to recover. I even tried Safe Mode and Single-user mode, but was unable to solve the problem. I did stumble on a solution, however, using an external HDD and another MAC. Here's what worked for me:
1. Using the external USB HDD on a good MAC, I first erased the external HDD, selecting MAC OS extended journaled as the file format, creating two partitions, and checking GUID partition table under options. Note that in my case, my bad MAC had a 750G internal HDD, and the external drive was 2T, and I had set up 2 partitions of 1T each.
2. There's a link on apple (http://support.apple.com/kb/DL1433) that has a utility, called the OSX Disk Recovery Assistant that installs a recovery partition on an external drive. Run this utility on the good MAC, and install the recovery partition on the second partition that you created on the external HDD.
3. Move the external HDD over to the bad MAC and power it up. Hit the option key during boot and select the boot disk as the recovery partition on the external HDD.
4. From here, I was able to use the recovery utility running on the external HDD to re-install the OS on the first partiiton on the external HDD. Please note that it will ask you to log into your apple account so make sure the laptop is connected wired or wireless (by clicking on the wireless icon in the upper right and connecting it to you router - recovery will not remember your router settings from the corrupted OS). After the OS recovery was done, I used the startup screens during the initial OS boot to re-load an old backup that I had on my time machine at home for my daughter's MAC. It was a late-August backup but at least got some of the applications and older data recovered. Note that those project files were not part of that backup, and in your case, you might not have a backup at all.
5. Finally, at this step, I was able to boot into the OS from the external HDD. The OS was Mavericks, and once booted it gave me access to the corrupted internal HDD! Note I tried a ton of other methods and this was the only one that gave me access to the corrupted internal disk. I was able to navigate over to her files under documents, and moved them over to the desktop (which, keep in mind, at this point exists on the *external HDD*). Here you need to grab all the files you need, because the next step will erase the internal HDD.
6. I booted again into recovery on the external HDD, and brought up the disk utility. I selected the external drive, then clicked on the restore tab. From here, you can select the source as the external drive and destination as the internal drive, and hit restore. This will copy all of the external HDD contents back to your internal drive. After this step, you can power down, remove the external HDD, and power back up. My internal drive now had the boot image that was on the external drive, and I was back in business, with the recovered files still sitting on the desktop. Make sure you get the source and destination right - you wouldn't want to erase your external HDD and go back to step #1.
Hope this might help some people who are having difficulty with the upgrade and might have critical files that otherwise would have been lost. If you have an up-to-date backup, then the process would be a lot simpler. Hopefully my daughter will make sure her laptop always has a current time machine backup in the future.