Quite honestly, I would not get too hung up about the failures or the 5-year marker. I failed a checkride at the 4.5 year marker (initial type) and still made it into the pool.
I believe Atlas has their system pretty well dialed in. (though some really good guys seem to get lost in that shuffle...)
For them it is all about points. Bad things get you fewer points and good things make up for that in points. If you have a failure that would be bad points. If you have a good explanation and let them know how you learned from it and how it made you more of the professional you are today that might get you some bonus points.
Or, there are just other real great things about you they like and that makes up for a few lacking points here or there.
Either way - don't let it stop you from applying (here or anywhere else). BUT, be honest, don't lie and have a very good explanation as to the why, how and stuff. DO NOT blame anyone besides yourself for the failure. No matter what the real story is - it just does not sound right.
And don't try to trick them with the time. Be honest, give them dates and let them decide. They will find out via PRIA anyway...
Enough of that! Good luck to all of you (us)...