That same article also says
In mid-2011, Kallman invested with Young and helped assemble a Pono team that included representatives from audio giants Meridian and Dolby, according to insiders. Once WMG signed on, Kallman said that he and Young approached UMG CEO Lucian Grainge and Sony Music CEO Doug Morris about remastering their catalogs for Pono distribution. Neither UMG nor Sony officially acknowledged those conversations.
which is what leaves me uncertain as to which process is actually being done. An announcement that states clearly what process is used to create the files wouldn't seem to be that hard to find. The lack of any details is what makes me suspicious.
I tend to suspect it's just upconverting. If they are actually remastering thousands of albums, that's the type of thing I would be making sure was at the front of my ad campaign. The buzz generated from that would almost certainly assure the success of the project.