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Change of status from L1B VISA to H1B VISA with an expired L1B visa but extended I94?

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  • Change of status from L1B VISA to H1B VISA with an expired L1B visa but extended I94?

    I entered into USA on L1B VISA which expired in Aug 2012.Currently I am working in USA on extended I94 (it is valid till Dec 2014).
    The important point to note here is this extended I94 was issued to me at Port of Entry and it was not extended by filing a VISA extension application with USCIS.

    When my visa was expired as I had a valid I94(valid till dec2014), no VISA extension was filed for me by my current employer and my employer asked me to continue working on I94 which i got at port of entry. Currently I am working on this extended I94 issued to me at port of Entry.

    My question is, with my L1B visa already expired and with this I94 ( issued at port of entry and not extended by proper L1 VISA extension process)
    can I apply for change of status from L1B to new H1B this year with a different employer B.

    Will I have any issue getting a new H1 B visa because my currenct status is not considered as valid L1 Status due to my I94 coming from officer at port of entry but not through a valid VISA extension filing process.

    Also another questions is, if I apply for change of status this year and by any chance if my H1 application gets rejected, how will it impact my current I94 validity?
    Will I have to leave this country immediately or I can continue stay here till my current I94 expiry even if my new H1 B application is rejected for ny reason ?

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