The El Capitan (Master John E. Therik) had been in convoy PQ-17 which was dispersed on Admiralty orders in the Barents Sea on 4 Jul, 1942. On 8 July, she picked up 19 survivors from the John Witherspoon, which had been sunk by U-255 (Reche) two days earlier. She reached Novaya Zemlya where she joined five other merchants and eight escort vessels from the convoy in the Matochkin Strait. Commodore Dowding assembled a small convoy out of them and then proceeded to Murmansk and Archangel.
On 9 July, the small convoy was attacked by several German Junkers Ju 88 aircraft of II. and III./KG 30 about 65 miles northeast of Iokanka. A Ju 88 from II./KG 30 dropped three bombs which detonated close to the El Capitan in 70°10N/41°40W. The concussion caused the after peak compartment to break open, the bulkhead at #4 hold was ruptured and the starboard side of the engine room was demolished. Holds #4 and #5 began to take water and the ship settled by the stern. Soon it became clear that the ship was in sinking condition and all 37 crew members, 11 armed guards and the 19 passengers safely abandoned ship. They were all picked up by the British armed trawler HMS Lord Austin (FY 220) and taken to Archangel. They were later taken to Glasgow and repatriated on the steam passenger ship Queen Mary, arriving in Boston on 15 October.

The armed trawler tried to scuttle the wreck with gunfire after rescuing the crew but apparently she stayed afloat and was sunk by U-251 with a coup de grâce at 00.45 hours on 10 July.