After the Second Battle of Bakura and death of the Dark Order of Korr's leader, the New Republic assumed that Jaden's forces would soon come to a swift end. However, unknown to them, Jaden's demise marked only a shift of power to Darth Persia, one of the order's generals. Once he had gained direct control, Persia led his Sith fleet to Eriadu and eradicated the last of Korr's supporters. Detailed information on the First Battle of Eriadu had only reached the other factions of the Imperial Remnant. Although the Republic received several rumors of a battle between two Imperial Warlords on Eriadu, they remained unaware of the reorganization of Jaden's forces into the Greater Sith Empire.
In spite of this, Republic Intelligence also received rumors of a takeover by an unknown Remnant leader. New Republic High Command was alarmed by the possibility of a successor to Jaden. They eventually reached the conclusion that any would-be replacements of the Dark Jedi would need to be eliminated. In order to send a message of supremacy to the Imperial Remnant, the Republic sent a fleet to Eriadu, intent on eliminating the Imperial presence.
After sighting a hostile fleet in the system, the Sith immediately launched TIE Fighters and Interceptors. This sudden rush caught the Republic ships by surprise. By the time X-Wings and Y-Wings had started to launch, the Sith Capital ships were already moving in on the Republic fleet.
The Sith fleet lost several Kerl-class battleships en route, but held the advantage with Darth Persia in command. His military command experience and expertise proved itself more than a match for that of the Republic fleet. The capital ships of both sides engaged each other at close range. Torpedo waves from bombers inflicted heavy damage on the two fleets.
Unfortunately for the Republic, the large amount of Kerl-class vessels coupled with the presence of the Star Dreadnought Persia proved too much to overcome. The outgunned fleet concentrated all fire on the behemoth, but were unable to bring its shields down.
Soon afterward, the Republic fleet was annihilated, with a small amount of capital ships escaping into hyperspace.
The near total destruction of their task force was completely unexpected by the New Republic. Fearing that the serious threat which the unknown Imperials posed to neighboring star systems, the Republic began to organize a fleet for a second attack. Meanwhile, the Sith fleet stayed in orbit at Eriadu to repair their forces and continue the shipyard production. They would eventually continue the war against the New Republic, but not before withstanding another attack on Eriadu.