Reinhard celebrates the new year with his officers. The citizens on Heinessen panic and question the government's handling of the situation. Admiral Bucock is chosen to lead the defense of the Alliance. The Alliance situation is dire as the fleets are greatly weakened from past campaigns, the only intact fleet is the 1st fleet. The 14th and 15th fleet are then created from a hodgepodge of 20,000 ships from around the Alliance. The military leaders of the Alliance realize however, they do not have enough ships to block the exit of the Phezzan corridor. Yang is given free rein over any future actions for the 13th fleet. January 8, 799 S.C. / 490 I.C.: The first Imperial fleet, led by Mittermeyer passes through the Phezzan corridor into Alliance territory.
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