wtvv,
My understanding is that you should be able to convert to the JAA equivalent of a frozen ATPL. In order to unfreeze it, there is an extra requirement (at the moment) of 500 hours multicrew, so they have also allowed you 7 years to gain that. I've not heard this thing about loosing theory credits, but if thats the case I'll stick pen to paper and get it in writing from the jury at Gatwick.
PS