It was anchored 4 kilometres (2.5 mi) off Newcastle when the Bureau of Meteorology issued a severe storm warning and directive for ships to move out to sea.

However, even with its engines at full-ahead Sygna was unable to make any headway and the storm turned it parallel to the beach and it ran aground.

[12] McFarlane was awarded the Air Force Cross, with other members of his crew receiving commendations for their heroic efforts during the rescue.

[15] On 4 September a salvage team led by Japanese millionaire Kitoku Yamada refloated the ship after repairing several holes in the hull and then pumping out thousands of tonnes of water.

[citation needed] On 14 January 2010 it was reported that the NSW National Parks & Wildlife Service and shipping experts believed that the Sygna could rust to the waterline within ten years.

[19] During storms on the weekend of 4–5 June 2016, the remaining superstructure collapsed into the ocean, leaving only a small part of the hull still showing above the waterline.