O.K., I've know some of this for months...but I wasn't free to discuss it.  But Hugh talked about this during Artspeak...so here's the latest.
 
Hugh is no longer with Sony.  Basically, they were going in a different direction than he wanted with the album.   The music they wanted him to record wasn't the same music he wanted to record and it was not want he knows fans want him to record.  So, they have, in his words, parted as friends.  
 
He said he is singing for several labels, looking for one that is right for him.  He said the album will still happen, even if he has to do it himself.

I'm very glad Hugh is so dedicated to his work that he is willing to work so hard on finding the best company to work with...
 
...but OH MY GOODNESS I WANT THIS SOLO ALBUM!