The bar is a place where officers go to relax and watch the news. It is mentioned in the FreeSpace Reference Bible, and several cutscenes are mentioned to have taken place here. However, they were all cut from the game. The bar is located in the ITA Repulse Officer's Club. The events described in the Reference Bible are considered canon as long as they do not contradict the game.
At one point, a fight in the bar between Terrans and Vasudans erupted because a drunk, xenophobic Terran attacked a Vasudan after the Lucifer destroyed the Taranis.