It's always sad to see any school go bust in spite of how they got there.
That said to all the students that are concerned, don't be, the normal course is that the CAA take charge of the records via an examiner or other competent person and you then email the CAA to get the records transferred to whatever school or club you end up in.
It's fairly straightforward and can take a wee while but there's no reason why you cannot continue to train from the point you left off before they get your records on the basis of both your log book and your actual skill level. I'm 100% sure that this will be the case at both BAT and LE knowing people that work at both places and they are good folk that are interested in helping people get their ticket.