Conditions for a 1-Yr. H1B Extension after PERM denied and PERM is presently under MTR.


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I applied for my PERM in the month of MARCH-2013 , My PERM got denied couple of weeks back and my employer opened an MTR for the PERM case, My 6th year on  h1b will expire in JAN 2015,
EMployer said that he applied for a 1-year H1B EXtension based on the 365 day PERM.
My question here is : 1. Can my employer actually apply for a H1B  and if he can apply how sooner will he has to apply for an extension?
He actually applied for my H1B last week.

Please help me, Appreciate you response in this matter.

THanks in advance.

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