I've had to do this with vendors in the past. I have a few that have burned me, but all of my colleagues have had great experiences with them. It takes quite a while for me to give them my business again. The few times I have, it has worked out well so far. I'm glad you were able to reestablish your friendship but with some clear boundries.
It's sometimes possible but once trust is broken it's never really the same.
I can appreciate that. It's bittersweet for sure.