The owners of Hong Kong's Jumbo Floating Restaurant deny that the craft sank.
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The restaurant owner said in a statement that the towing of the restaurant encountered adverse conditions in the South China Sea.
Reports of the boat sinking were incorrect.
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The company used the term "Capsize" and not "sink" to describe the incident, but they wouldn't say if the boat remained afloat.
Rescue work would be difficult due to the depth of the water being over 3,300 feet, according to a company PR representative.
The boat sank as it was being towed away to a secret location, but Hong Kong's Marine Department said it was headed to Cambodia. Water seeped into the vessel and caused it to start tipping despite the ship's go-ahead approvals.
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The saga of the landmark destination opened in 1976, which has served figures such as Tom Cruise and Queen Elizabeth II, has been altered by the debate on whether the ship sank or capsized. The restaurant was towed away from Aberdeen Harbor on June 14.
There was concern for the restaurant after a kitchen barge sank. Despite its status as a historic institution, Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor issued a statement in May that the local government had no intentions of investing in the property.
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