Here's a workaround that solved the problem for me:

1) enable framebuffer mode:

echo FRAMEBUFFER=y > sudo tee /etc/initramfs-tools/conf.d/splash
sudo update-initramfs -u

2) add this line to /etc/default/grub (The resolution has to be
supported by BIOS. To check, execute vbeinfo at grub2 prompt.):

GRUB_GFXPAYLOAD_LINUX=1024x768

3) and finally:

sudo update-grub2

-- 
Ubuntu splashscreen big and ugly after installing ATI graphics driver
https://bugs.launchpad.net/bugs/563878
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