The 21,000-ton, 840-passenger Seabreeze sank in 20-25 foot seas and 30-70 knot winds while sailing 200 miles off the coast of Virginia. The ship was reportedly en route to Charleston, South Carolina after being purchased by Donaldson Lufkin & Jenrette for $1.75 million in a Marshal's Sale in Halifax. All 34 crewmembers were rescued by two U.S. Coast Guard helicopters after a pipe reportedly broke and flooded the engine room. There are rumors that the vessel had been ordered by the owners to leave Halifax with marine equipment that was not in full working order.

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