Despite managing to claim a tactical victory in the Battle of Vermilion, Yang was forced to surrender to Reinhard after two Imperial fleets led by admirals Ruenthal and Mittermeyer conquered the capital planet of Heinessen, forcing the Alliance Supreme Council to surrender unconditionally. In a last-ditch effort to fend off the invaders, Yang Wen-li attacked Reinhard's personal fleet when it was isolated from the other invading fleets in the Vermilion Starzone, hoping to destroy the Brunhild and kill Reinhard, thus throwing the Imperial forces into confusion and disarray. ( LOGH: ' The Two-Headed Snake: The Battle of Rantemario') The Battle of Rantemario, despite the timely intervention of the Yang Fleet, saw the near-obliteration and utter defeat of the Alliance forces.
The Alliance hastily mustered its fleets and placed them under the command of veteran admiral Alexandre Bewcock, who attacked the Imperial invasion forces in the Rantemario Starzone. Overconfident in the defensive abilities of Iserlohn Fortress, the Alliance was unprepared for Reinhard's invasion.
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Reinhard seized control of the Dominion of Fezzan, making the formerly autonomous (and neutral) territory the forward-base for his invasion of the Free Planets Alliance. ( LOGH: ' The Abduction of the Young Emperor') When former High Nobles abducted the young figurehead of the old Imperial line, Kaiser Erwin Josef II to the Free Planets Alliance to establish a government-in-exile in 797 UC (488 IC / 3597 CE ), Reinhard, with overwhelming popular support, declared his intention to invade the Free Planets Alliance and to eliminate the vile High Nobles once and for all. Reinhard immediately began reorganizing the social and political structure of the empire: he abolished the caste system and redistributed the property and assets of the nobles he instituted many progressive legal and social welfare reforms and he eliminated corruption and graft within the Imperial government.