Between 01.33 and 01.35 hours on 11 Feb 1942, U-136 fired four torpedoes at convoy SC-67 south of Iceland and reported hits on two steamers and on a corvette and later sighted debris and two lifeboats. In fact, the Heina and HMCS Spikenard (K 198) were sunk.

HMCS Spikenard (K 198) (LtCdr H.G. Shadforth, RCNR) was the ship of the senior officer of the escort (SOE) on station off the starboard column ahead of convoy and sank within five minutes after being hit on the port side in the bow near the bridge. Her loss was not noticed by the other ships in the dark night and the search for her only begun during the morning. The commander, four officers and 52 ratings were lost. Eight ratings were picked up from a raft by HMS Gentian (K 90) (Lt F.M. Osborne, DSC, RANVR) about 19 hours after the sinking.