There was an interview with someone (pretty sure it was the Okudas) in the old thread where they said the film masters existed and were in excellent condition, and that the documentation on them was incredible as far as take, timestamps, etc.
Going off of memory, the issue was never can
it be done, but a much more reasonable Is it financially responsible to do it?
Will syndication pay more for an HD version of TNG and will the BD versions sell enough for the project to make a profit (hell, or even break even?) I desperately want this to happen, but even I don't think it's a possibility at this time for this reason.