RedactedNarrative: V1 was towing V2 travelling north approximately 25 miles west of Egmont shipping channel.  V2 broke free from V1 and began to drift.  V1 circled back around in an attempt to retrieve V2. V1 operator slammed vessel in reverse to avoid colliding and in doing so caused the engine compartment to flood.  
  
  Another contributing factor was a port (hole) in the hull.  The vessel continued to take on water to a point where the bilge pumps were unable to save the vessel. V1 was anchored where it eventually sank and all passengers boarded V2.