By noon on the 29 January, this convoy was only ten miles from their destination and the British rescue tug Frisky was ready to take the store ship in tow. When they were eight miles off Skaggi Point light, near the entrance to the swept channel to Reykjavik, the USS Alexander Hamilton cast the tow line and proceeded slowly ahead. At 16.10 hours, the German submarine U-132, which was patrolling off Reykjavik since eight days, fired a spread of four torpedoes at the little convoy, one of them struck the cutter amidships and destroyed all engines, including the emergency diesel generators, so no heat, steam, nor electricity remained. The other torpedoes missed their targets.