1) Would I be able to apply for extension with my employer.
Yes, possibly.
2) If yes, I'm assuming application will be pending until decision is made on my employer's licence. Is this assumption correct? How will an application be made when no COS can be assigned.
It will be held for however long HO take to decide about the suspension or revocation. You cannot apply if you don't have a COS.
3) Will this application count towards ILR on 5 years on Tier 2 visa basis. I'm not interested in the 10 year ILR route.
Probably, if you are approved at some point. If your visa expires and your application is refused after revocation, then you will be an overstayer.
3) Lets say 6 months down the line, my employer's licence is revoked, what will happen to my tier 2 timings, will the time in extension application count towards Tier 2 five years or no. If no, will it be considered a break in 5 years. My 5 years finish next year Feb 2019. I'm not looking towards 10 year ILR, that would take me another 4 years. I am interested in making ILR application in 2019 on a 5 years Tier 2 visa basis. My concern is will making an application during suspension cause a break in my 5 years if my employer's licence was eventually revoked.
Suggest start looking for a new sponsor now but it might still not be enough time given that your visa expires in April.
