The Jean de la Lune was photographed underwater moored at Marina San Miguel with its masts removed.
The French wooden fishing vessel was built in 1957, before being converted in the mid-1970s.
More recently, she was used for sail training and, at the time of the sinking, she was used as a moored hotel run by The Tall Ship Experience.
However, since the sinking, all content has been removed from the website.
Peter Redshaw, who used to live in Craobh Haven, was on holiday in Tenerife on April 5 and went to visit the ship.
He said: 'JDL was a vessel which ran out of Oban in the late 80s. It is rather sad to see the ship capsized and her masts sawn off. Whether she will ever be refurbished is not known.
'It was high tide so she was underwater in such a sorry state. The masts had to be removed as they were leaning over the quay. This happened two weeks ago and on inquiring I was unable to find out how the accident occurred.'
An old crowdfunding page titled Jean de la Lune - The Tall Ship Renovation can be seen online, which asked for £150,000. However, after raising just £18, the fundraiser was closed.
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