friendly-recovery tool hangs trying to do almost anything with encrypted swap partition

Steps to reproduce:
1. boot into recovery mode
2. from the "Recovery Menu", select "Enable networking"
3. when warned that continuing will remount / in read/write mode,
   select "Yes"

Expected behaviour:
- system runs fsck on root FS, which quickly succeeds (because the
  FS is clean -- I ran fsck manually quite recently)
- system remounts / in read/write mode
- system enables networking
(I would expect all this to take < 1 sec)

Actual behaviour:
- system runs fsck, which quickly succeeds
- and then it hangs: there's no indication of what it's doing and no
  feedback of any kind (screenshot attached: recovery-mode-hang.png)
- there's also no way to dig around and figure out what's going on:
  network interfaces aren't up and no other text consoles are active

My lame attempt at a workaround: hit Ctrl-C. This doesn't help. A
bunch of text flies by, some of which might be relevant to the hang
(screenshot attached: recovery-hang-encrypted-swap.png). Then the
system goes into "failsafeX" mode, which doesn't work for me (probably
a separate bug).

I don't think there is anything special about the "Enable networking" option here. I've seen very similar (identical?) behaviour trying to run the "clean" and "dpkg" options after booting into recovery mode.

ProblemType: Bug
DistroRelease: Ubuntu 12.10
Package: friendly-recovery 0.2.25
ProcVersionSignature: Ubuntu 3.5.0-27.46-generic 3.5.7.7
Uname: Linux 3.5.0-27-generic x86_64
ApportVersion: 2.6.1-0ubuntu10
Architecture: amd64
Date: Sun Apr 14 17:29:46 2013
InstallationDate: Installed on 2012-09-30 (196 days ago)
InstallationMedia: Ubuntu 12.04.1 LTS "Precise Pangolin" - Release amd64 (20120823.1)
MarkForUpload: True
PackageArchitecture: all
SourcePackage: friendly-recovery
UpgradeStatus: Upgraded to quantal on 2012-11-22 (142 days ago)