Clarification on H1B filing, while on L1B

[skumaravelayutham]

Currently am in US on L1B visa which got expired on May 29, 2011, but with valid I94 till 2014.
My employer couldn't process either LtoH Conversion or L1 extension due to company policy. I need to go to India for shorter period during end of this year.
Am afraid to proceed with new L1B petition, due to high chance of RFE thereby I may end up in 'Out of status' during stamping in India/Canada.
Hence is it good & safe to proceed with new H1 filing, once I get approved I787 I can get H1 stamping easily while I go to India? Till that I can stay legally in US with my valid I94.

Please advise and confirm my assumptions.

[kabkaba]

There is no status when you are out of the US and hence no 'out of status'.
It is up to your employer to decide whether to file H1 or L1. Neither is more or less easy.