I am no legal expert so I thought I'd see if anyone knows. 

With Scalebound no longer funded by Microsoft, can another company come around and fund it's production and release it? 

This is either a third party question (say Square Enix or Sega) or first party one (nintendo or sony). 

No, because it belongs to MS and Platinum Games cant do anything with the progress and material they had since its not legally their choice. So unless MS decides to sell it to someone else, the game is done and everything that was put into it lost forever in time. A lot of effort for nothing. Just like falling in love.

Yes MS can continue development of the game or they could sell it to another company and they could continue making it.

Only by Microsoft.

interesting that this is a common thing to happen with microsoft, i wonder what would happen if bungie was with sony instead of microsoft, would they still be with sony now like naughtydog

It's in limbo since it's Microsoft IP as far as I know, so no it won't be saved unless Microsoft themselves does something

the only way to rescue this is buying the IP from MS, which won't happen - Platinum doesn't have the money, 3rd parties are not interested in an IP like this and MS won't sell it to a competitor

Probably. Sony seem to give their studios more freedom than MS does and from what I understand Bungie wanted out because they didn't want to be the Halo studio anymore.

yea, it seems their Destiny-pitch was refused several times by MS

If Microsoft was paying for development then they own all the assets and code. The game isn't going to get made without their say-so.

If so, then it's basically the same situation as with Bayonetta 2, except Microsoft doesn't need money like Sega did. To the contrary, the amount lost is a drop in the bucket to Microsoft, who has a history of buying start-ups and budding technology companies just to shut them down. I don't doubt they'd rather eat that loss rather than have Sony benefit from it.