Company spin off with PERM pending

Hi, I am working for Company A, the division that I am working for, is spinning off into a new company B with a VC investment. My PERM is pending with USCIS and will take another 7-8 months, whereas the spin off will be done in next 2 months. I asked the company lawyers, but they are not giving any answer. I am on 7th year of H1B, so no more extensions for me unless PERM is approved. What happens to my PERM application pending with USCIS after spin off? Will it have to be restarted after spin off? Or we can wait for approval and add amendment? Please suggest and help! It has been a very stressful situation. Thanks

PERM is for a future green card job. So if company A is still willing to sponsor your green card, your PERM can keep processing while you switch to company B. Once the PERM is approved , company A can file I-140.
After the PERM is approved , company B can extend your H1B under AC21 for one year at a time till I-140 is approved after which H1B can be extended for up to 3 years at a time.
If your PERM is not approved before your H1B period max out, you will need to leave the US and come back once your I-140 is approved.

Above scenario changes if company A withdraw your PERM application once you switch to company B in which case company B will need to sponsor your green card and file for a new PERM.

Hi Kalpesh,
Thanks for answering the question. Will it not be a problem if PERM and I40 process continues in the name of Company A whereas my employment will be with Company B? There will be a mismatch then.

No mismatch of any sort. Any employer can file PERM as it is a FUTURE green card job. You are not required to be working on H1B with the employer that files your PERM.