We know that the development for the title is taking place at Ubisoft Toronto, but what has changed or what the new plan is for the title is unknown. What is perhaps most interesting is that the title is being re-worked for a next gen release, rather than just starting over. Maybe (despite the departures from the team and the word that the title has lost its way) things were not as bad as they seemed.
No word yet when the title might ship; but we suspect that we will be hearing more about this one at E3 in June.