U-158 located the convoy at 0425 24 February and torpedoed the British tanker Empire Celt. Empire Celt was testing a new Admiralty Net Defense system by streaming a strong steel net from 50-foot (15 m) poles along either side of the ship. One torpedo broke through the net and hit amidships. Empire Celt later broke in half, but a tug from Newfoundland rescued 31 from the crew of 37.
As U-558 was torpedoing ships on the starboard side of the convoy, U-158 approached the port side and torpedoed British tanker Diloma at 0635. Diloma was the only one of the torpedoed ships to successfully reach Halifax. Both U-158 and U-558 dived to avoid being seen in the early daylight. U-558 found and sank the Eidanger, drifting and abandoned astern of the convoy, with gunfire and a torpedo. All of Eidangers crew had been rescued. Lea investigated a DF bearing from Toward at 1515 and spotted U-558 twenty miles (32 km) astern of the convoy at 1707. Lea dropped eight depth charges at 1746, and then surprised the U-boat on the surface at 1813 and dropped fourteen depth charges at 1847. U-558 was undamaged.
Nicholson investigated a DF bearing from Toward and sighted U-158 at 1323. U-158 dived and evaded Nicholson. Nicholson then slowed to listen. U-158 surfaced at 1550 and was surprised to find Nicholson waiting 1500 meters away. U-158 crashed-dived before Nicholson saw the U-boat. U-158 surfaced again at 1817 and was surprised to find Edison 2,000 yards (1,800 m) away. U-158 again avoided detection by crash-diving. Edison finally spotted U-158 making another convoy approach at 2008 and dropped 25 depth charges over the following six hours. U-158 was undamaged, but had been prevented from making further attacks on the convoy.
Admiral Karl Dönitz, the BdU or commander in chief of U-Boats, ordered his U-boats to discontinue the attack on 25 February. The escort was reinforced on 26 February by the USCG Treasury Class Cutter Spencer. The remainder of the convoy reached Halifax on 1 March 1942.
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