All wrong.
According to the latest update, ICP students, after completion of the CPL-IR, take an interview with the head of training! It's basically a review of the training and if it is seen as up to standards then the trainee will be offered a place for the AQC, for which he will have to pay for.
Upon completion of the AQC and because the trainee did his basic training WITH CTC, he will join normal cadets in the holding pool and will remain with his CP fellow mate on the seniority list.
It is different for ATP guys. As they only join CTC for the AQC they won't be in the same holding pool. It doesn't mean they'll be at the bottom, it just a different list I guess.