I've seen that before (once or twice over a decade w/ SME servers). I have a sense that it usually happens when I've left a putty session open doing something else on the same server.
I would use 'ps -aux', try to figure out the stuck/frozen process, kill it, then attempt to reboot again.
Failing that, assuming you can still re-connect using putty, you could (since you've already issued the 'signal-event reboot') try 'shutdown -r now'.
After that, I'd try walking over to the keyboard actually connected to the SME and pressing <ctrl><alt><del> (this seems to be tied to a forceful 'shutdown' in linux systems since the 90's).
If none of that worked, I'd cross my fingers and hold the power switch in...
However I get it rebooted, I re-run 'signal-event post-upgrade; signal-event reboot' as soon as it comes back up.
Hopefully you have a recent bootable SME CD on hand, in case you need to boot into 'rescue' mode and run 'fsck'.