JDK 1.7.0_51: Error connecting to server localhost on port 1527

I'm getting the following error starting Derby after upgrading my JDK to 7u51 (1.7.0_51) :

java.net.ConnectException : Error connecting to server localhost on port 1527 with message Connection refused.


See: http://www.oracle.com/technetwork/java/javase/7u51-relnotes-2085002.html

Workaround:

   I added the following grant to the jre/lib/security/java.policy file:

   permission java.net.SocketPermission "localhost:1527", "listen";