L1 exten denied,is it possible to apply h4.since he is out of status.

My husbands L1 extension got denied,but i am on H1b (cos) valid til 2015.Is it possible to apply my husband a cos to h4.since he is out of status & his I-94 has got expired in feb 2013.Also will he by default get a H4 status now?

Can his company apply for a L1A from here itself?

Please suggest options if any

He needs to leave US immediately and return on stamped H-4 visa. He cannot file COS to H-4 as his I-94 has expired.

Nothing can be filed from within US as the I-94 has expired. If he wants L-1A, even then he need to go out, get it stamped and then return to US.