They claimed ignorance of their responsibilities under the CAA to keep student records for BCT students.
I think you are a little confused here. BCT were a Registered Facility and the Responsible Person nominated in the application for registration is the person who is responsible for all Training Records. There is no legal requirement to keep such records for any finite period of time though the CAA recommend 3 years. There is no documented procedure to deal with Registered Facilities that cease trading other than that they are required to notify the CAA that they are no longer trading. In the past, records from RFs that have notified their demise have been sent to the CAA for safe keeping. They should not be transferred to another organisation. You should ask the CAA for details of the responsible person!