I-140 was applied by company A in 2007.
IN September 2011 my current employer company B applied for 8th year H1 extension as 7th year was about to expire.
8th year extension was timely filed.
in janaury-2012 got RFE on H1 extension request requesting to show employee and employer relation.
my company is preparing the documents to respond the RFE.
meantime on 01/23/2012 I came to know that my I-140 has been denied and the denial notice has been sent.the employer A who has filed my I-40 is no more in business.so no chance of appeal.

Am I authorized to continue working as my H1 extension request is still pending even tough the basis for the extension request I-140 has been denied.