If he didn't intend for the wings not to be level, then it's still LOC.
If he is flying the aircraft and it is perfectly serviceable - he hasn't lost control if he is simply disorientated - it is still CFIT because the correct recovery action would have worked - ergo not LOC.
It is semantics anyway, they all died for no apparent reason and without a definite technical failure or any CVFDR data, we won't know for sure.