Shirley Blair from DCT has been responding on Womagwriter's Blog.
It's worth reading the comments too, for further clarification, especially in relation to pocket novels. We can send our original manuscripts to large print publishers, but not the printed copy. Now we just have to persuade large print publishers to accept the manuscript versions.
The good news is that if they do want to use our pocket novels again, they have to renegotiate terms. So they can't be re-used without further payment.
I know this has caused a lot of us stress, not knowing where we're going, but there are other publishers of romance out there. Perhaps it's time to spread our wings a bit so we're not reliant on one market.