when I enrolled with my CPL/IR school, they had the same problem...At some point the learning skills council wiped their database of inactive organisations. It took 2-3 months to sort it out but It worked out nicely for me since I booked my course 3 months before I was due to start anyway.
Yes BGS should be able to get their approval back. Its not a difficult process, they just have to jump through the hoops.
In my opinion, I think the CDL is more logical for the CPL/IR, if your intending on going down this route. If you don't have the funds for the hour building and ATPL theory, then depending on certain circumstances, you may be pushed for time to get your IR before the ATPL credits lapse. Food for thought.