Of course it was legal and has been explained in length here.
And by the way: The re-activation of Starr-Queens should Support my view. Would it have been illegal, the Company would have been dissolved by the recommendation either from their lawyer or from the SEC.
As this is not the case of course, some have no Problems because one cannot put the Status "illegal" on something and waive with the stick of the SEC and then realize, Oh Jee.. the Company is not dead actually on the contrary re-activated.