COS filed in PP, I-129 denied. Traveled outside USA


I filed for COS for my wife, who was in US on H4 along with me in PP in the month of May. I am still in US on a valid H1 visa

She received a RFE in her case, which the employer and attorney replied on 1st June, and response to RFE was accepted by USCIS on 4th June.

We had to travel to India for family emergency last week, 11th June due to some unforeseen personal circumstances.

I checked the status today on USCIS website on her case, and it says:

On June 15, 2015, we denied your Form I-129, Petition for a Nonimmigrant Worker, Receipt Number EAC*******. We mailed you a decision notice that explains why we denied your case and your options. Please follow the instructions in the notice.

Does this mean that her COS petition alone has been denied, or her H1B work authorization has also been denied?

Does this denial has to do anything with her traveling to India since her COS petition was still pending?

Would really appreciate if someone can throw some light on this asap. What are the next steps for us to take?