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I'd get a lawyer to have a look through the contract. Usually first appointments are free, and you can use that to double-check what responsibilities lie on your shoulders and what's on the publisher's.

I agree that it sounds like the original contract should have died with the publisher. I'd be surprised if it included a clause where you had to continue paying editors and cover designers for five years after their business collapses.

And if it does... I'd shelve those books for the rest of the five years. Unfortunately it's not as simple as sending money to each person through Paypal. You would be taking on responsibilities (including tax responsibilities) and it could hurt badly if you make a mistake. =(

Sorry this has happened to you. It's a sucky situation and you don't deserve it.
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