The only OFFICIAL words we have been given are:
Yes, Papyrus has closed up shop for good. Sorry, but it is true.
The last time I asked a few weeks back, the statement was that multiplayer will continue to be fully supported. Nothing has been said to change this, but we are asking again to be sure. The reason parts are still down is they physically moved the servers from Boston to LA. The bugs arn't worked out yet.