Veritas sacked Khadon. Then Gorin and me came to the rescue and kicked some Nurmafer butt on your behalf. Your royal family is still in custody, except from your Prince/King Rhama - who basically was a big chicken and did only guerilla warfare. Anyway, Shalamari/Gorin/Khemri met Nurmafer/Veritas at the battle of Guitar, which we lost and me and Ken were pushed back towards the mountains.
Now, Veritas and Shalamari are working out a peace treaty, detailed in my post #2008. There are some details that need to be sorted out (namely the rebuilding and restructuring of Khemri, or rather the circumstances in which this is to take place) Basically, you can torpedo the entire peace process if you want to keep fighting, but I highly recommend you don't. We've made good progress so far, and there will be nothing called Khemri left after such a war.