Universal Music Nashville Chairman and CEO Luke Lewis will exit the label May 1 to make room for Capitol Nashville's Mike Dungan. And while details are still scant, MusicRow reports he will launch a new company under the Universal umbrella.

SEE ALSO: Capitol Records' Dungan moving to Universal Nashville

Billboard.biz reported Thursday afternoon that Mike Dungan, the boss for more than a decade of Capitol Records Nashville, will soon make the move to Universal Music Nashville, whose parent is buying EMI, the owner of the Capitol label group. It's not yet clear exactly what roles Dungan and Universal's Luke Lewis might play in the merged organization, but if it goes through, Dungan would get a headstart on revamping its org chart.

Kenny Rogers has taken to court his longtime label, Capitol Records, and says it owes him some $400,000 in royalties from ringtones, downloads and other so-called non-disc revenues. A 2007 audit requested by the singer led him to ask for the money but Capitol has been unresponsive so far.

Country star Alan Jackson, who has sold some 60 million albums during his career, has a new home at Capitol Records, where longtime friend Mike Dungan is running the show. Jackson's upcoming album will be released as a joint venture between his label and Capitol's new EMI Records Nashville imprint.

“Everyone here at Capitol/EMI is beyond thrilled to represent Alan Jackson,” responds Dungan. “A true American original, a future Hall of Famer, and an artist whose work to date is not only commercially successful, but is of historical cultural significance.  We are honored, and we are jacked!”