Dave in reality MFSL never emerged from bankruptcy. (The reason they shut down sadly had nothing to do with them, their distributor went bankrupt and the MFSL inventory they held was siezed as part of that incident and the loss of all that inventory was too much of a financial shock for a small record company to handle.) After they closed their doors Jim Davis of Music Direct came along in 2001 and purchased the MoFi name and intellectual property (and I would assume any still valid licensing agreements). But what was now the reborn MoFi was not the original company coming out of bankruptcy, but rather a whole new company operating under the same name, not unlike when Japanese companies were selling electronics branded as Marantz and Fisher.
Now all that said, the "new MoFi" has put out some very nice sounding records over the years and it is worth noting that any of the now controversial mastering from digital copies of the master tape did not (allegedly) start happening until many years after the new management team took over. It was not a going in strategy of the new team but rather an idea that evolved over time.