Specifying hypervisor connection URI for virt-install will solve this
issue:

/usr/bin/virt-install --connect qemu:///system -n bootstrap -r 2000
--vcpus=1 --disk /vms/bootstrap.img,size=20,bus=virtio,cache=writeback
--cdrom /iso/ubuntu-server-12.04.iso --vnc --noautoconsole --os-type
linux --accelerate --network=network=management,model=virtio -d

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https://bugs.launchpad.net/bugs/1177261

Title:
  virt-install can't find existing network

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