ANZAC attempts to take the Celebes from the Japanese. Moves 1 cruiser, 1 destroyer, 1 transport with cargo towards the sea zone. Inside the zone is a Japanese battleship, transport and 1 infantry on the island.
The battle doesnt go well for the ANZAC. The Japanese battleship is damaged, but the ANZAC lose the cruiser and the destroyer. The only remaining ship in the sea zone for the ANZAC is the attacking transport.
Question: What happens to the transport? Can it retreat into the next eligible sea zone or is it sunk by the damaged battleship under the defenseless transports rule?