Web service failed to reinitialize the connection to the LDAP server

ERROR: Registration failed: Registration
Web Service: Datamodel Exception: Failed to reinitialize the connection to the
LDAP server.  The LDAP connection will be reinitialized.

This error is seen after stopping ndsd on a zlm7 server when the red carpet daemon is still running.

Doing a rug refresh after ndsd is brought down and back up  while leaving red carpet up will reproduce the error. 
ZCC will not properly re-connect when the ZLM Server is in this state.