In 17 ABY, after four relatively peaceful years, Imperial systems near the Hydian Way began to suggest the cessation of hostilities. The New Republic lifted its ban on former Imperial officials holding elective office. The move was intended as a peace offering, but the Moffs saw it as the prelude to an invasion.
Fearing invasion, the Council of Moffs secretly contacted Admiral Natasi Daala, who'd returned to the Deep Core and unified the "replacement warlords", ambitious beings who had taken control of what little infrastructure remained after Pellaeon abandoned the Deep Core and replaced the officers Daala had killed at Tsoss Beacon. Daala was convinced to fight, and the Moffs ordered Pellaeon to begin another campaign against the New Republic.
The New Republic was recovering from the Almanian Uprising and appeared divided. Furthermore, since the Orinda campaign the Imperial Remnant had received an injection of forces from the Black Fleet fleeing the Yevetha, among them the prototype Star Destroyer EX-F, renamed the Rakehell. Pellaeon - now a Fleet Admiral - thought the plan mad, but hoped to that he could win a few quick victories to satisfy the Moffs before offering peace terms to the New Republic.
What followed was an unmitigated disaster for the Imperial Remnant. Daala struck out of the Deep Core but her fleet was shattered by Garm Bel Iblis at the Battle of Columus. She was forced into a blind hyperspace jump and thought dead until she re-emerged in 40 ABY. Pellaeon's attack began well: he took Adumar and won surprise attacks on Taris and Battle of Champala on the Hydian Way, pushing all the way to the edge of the Core Worlds, but with Daala defeated, Ackbar and Bel Iblis were able to bring the full weight of the New Republic Defense Force to bear.
The Second Battle of Champala was an Imperial rout. Pellaeon was chased back to Imperial Space, which was rapidly reduced after defeats at Ketaris and Tangrene. Hoping to salvage a victory, Pellaeon deployed his surviving dreadnoughts Dominion and Megador, as well as the Rakehell, at Anx Minor. The Battle of Anx Minor was a disaster, with the Megador and the Dominion suffering severe damage in the detonation of the Rakehell's antimatter reservoir. Pellaeon ordered an immediate retreat to Bastion.
New Republic forces under Ackbar and Garm Bel Iblis reduced the Imperial Remnant's realm to a mere eight sectors, with Bastion, Yaga Minor and Muunilinst the only planets of note. This time the New Republic decided to not leave the initiative to the empire like the previous years. In 18 ABY, the New Republic fleet continued to keep the pressure on the Remnant, more particularly during the Corellian Crisis.
The Remnant would remain bottled up in its eight sectors for another two years until its stunted economy and hopeless position forced Pellaeon to sue for peace. Despite the Caamas Document Crisis nearly ruining negotiations, this eventually resulted in the Pellaeon–Gavrisom Treaty in 19 ABY and the end of the Galactic Civil War.
- The Essential Chronology
- The New Essential Guide to Characters
- The Official Star Wars Fact File125
- The New Essential Chronology
- The Essential Atlas
- The Essential Guide to Warfare