package python-setuptools 20.7.0-1 failed to install/upgrade: subprocess installed post-installation script returned error exit status 127

Ran into this bug while trying to install dependencies for Theano

ProblemType: Package
DistroRelease: Ubuntu 16.04
Package: python-setuptools 20.7.0-1
ProcVersionSignature: Ubuntu 4.4.0-59.80-generic 4.4.35
Uname: Linux 4.4.0-59-generic x86_64
NonfreeKernelModules: nvidia_modeset nvidia
ApportVersion: 2.20.1-0ubuntu2.4
Architecture: amd64
Date: Thu Jan 12 16:28:48 2017
Dependencies: python-pkg-resources 20.7.0-1
DuplicateSignature:
 package:python-setuptools:20.7.0-1
 Setting up python-imaging (3.1.2-0ubuntu1) ...
 /var/lib/dpkg/info/python-imaging.postinst: 6: /var/lib/dpkg/info/python-imaging.postinst: pycompile: not found
 dpkg: error processing package python-imaging (--configure):
  subprocess installed post-installation script returned error exit status 127
ErrorMessage: subprocess installed post-installation script returned error exit status 127
InstallationDate: Installed on 2017-01-11 (1 days ago)
InstallationMedia: Ubuntu 16.04.1 LTS "Xenial Xerus" - Release amd64 (20160719)
PackageArchitecture: all
RelatedPackageVersions:
 dpkg 1.18.4ubuntu1.1
 apt 1.2.18
SourcePackage: python-setuptools
Title: package python-setuptools 20.7.0-1 failed to install/upgrade: subprocess installed post-installation script returned error exit status 127
UpgradeStatus: No upgrade log present (probably fresh install)