After the beginning of the Dark Order War, Jaden Korr, leader of the Dark Order, came to realize that his fleet was far too small for him to begin any major offensives against the New Republic. Hoping for a timely solution, Jaden decided that the root of the problem was that he did not control any sufficiently-sized production centers; his only large production planet, Eriadu, seceded from the Dark Order after it was formed. Therefore, Jaden decided that had no choice but to capture another production center. He soon decided that Kuat, one of the largest starship producers in the galaxy, would be an ideal choice.
The aftermath of Lord Randal's campaign against the Republic four years earlier left a multitude of powerful Imperial Remnant warlords spread throughout former New Republic territory from the Core Worlds to the Expansion Region. The majority of the New Republic fleet was tasked to these territories, engaging in prolonged campaigns against these warlords. The Kuat sector was one of the most heavily contested sectors in the Core.
Kuat had been in a state of decline since Randal's campaign. While near-constant fighting between Republic and Imperial forces for control of the shipyards intensified, the situation for Kuat Drive Yards itself was complicated by a split in the company's leadership concerning which side to support in the Galactic Civil War. This led to a sector-wide civil conflict. As a result, construction at almost all of the sector's shipyards began to go through a constant cycle of stalls in production as control of the KDY-owned systems changed allegiances. These conflicts led to the destruction of several large production yards, while many smaller KDY facilities in the sector were disabled or otherwise compromised. The Kuat sector's defense fleets had long since been destroyed by the time the Dark Order War began. Civilian traffic in the entire sector dropped to an all-time low, while the Kuat system itself was regarded as a death trap.
Jaden, however, was only interested in the Kuat system itself, which housed one of the largest single shipyards in the galaxy: the KDY Orbital Array, a massive production facility that encircled the entire planet of Kuat. Many warships were still under construction at this facility and at other shipyards in the system, which, if captured, Jaden believed would allow him to significantly boost the size of his fleet in a short period of time. The planet Kuat itself was under control of Imperial Remnant troops which had been stranded there since Lord Randal's defeat. The Remnant ground forces, protected by a planetary shield, kept Kuat under a quarantine and managed to prevent any ground invasions.
As of the beginning of the Dark Order War, the Imperial Remnant had again been driven from the Kuat system by a New Republic battlegroup. Although victorious, the Republic forces at Kuat were left nearly crippled and isolated from reinforcements, being surrounded by heavily contested territory. Using the contested nature of the Kuat sector and the space around it to his advantage, Jaden Korr mobilized a fleet in the Tynna sector. From there, his forces used the Hydian Way, a hyperspace route which the Republic did not have effective control over, to reach Kuat.
Jaden's fleet annihilated the weak Republic presence there and captured the shipyards, sustaining minimal losses in the process. Because the surrounding sectors were still contested, the Republic was unable to immediately organize a retaliatory force. Meanwhile, most of the Dark Order's fleet passed through the Kuat system for repairs and construction was resumed. Because there was already a large amount of Imperial vessels mostly completed at the massive Orbital Shipyard Array, the size of Jaden's fleet increased dramatically in a small time-span. The majority of the new capital ships were later sent to already Dark Order-controlled worlds to reinforce inadequate defenses. The Hydian Way remained the only safe hyperspace route for use by Jaden's forces to enter or leave the Kuat system.
Soon discovering that the shipyard was running severely low on resources and components due to the recent , Korr ordered three supply convoys to the Kuat system to replenish the reserves. This move was anticipated by New Republic Intelligence, which organized a small task force to disrupt the arrival of these convoys while a large retaliatory fleet was assembled. Although the majority of the supplies managed to reach the shipyards, Jaden reached the conclusion that because the Kuat system was strategically almost surrounded by the New Republic and hostile Imperial Remnant factions, there was little chance of holding Kuat for very long. Therefore, at the suggestion of General Persia, Korr had his men covertly plant large amounts of explosives across the entire Orbital Array in preparation for the imminent attack of the New Republic armada.
When the New Republic attack arrived, the explosives were used to destroy the entire station just before Jaden's forces retreated. Although the Dark Order had been driven from the system, Jaden had delivered a severe blow to the economy, the Republic's industrial capabilities, and particularly to Kuat Drive Yards itself. The destruction of the Orbital Array led to the eventual collapse of the company shortly before the end of the Dark Order War.