Thanks mate, I knew I saw it somewhere and that I wasn’t going crazy (well on this matter at least). Yeah those boilers were going to cost more than the ship was worth to replace, add to that the cost of fixing the damage the fire caused (and you know you can never get rid of the smell of a fire, no matter what you do), it was deemed not worthy to repair, so they sunk it.
I know at one of the Marine stations there is a memorial to those 12 men who lost their lives in that fire, not sure which base it is though!