With the Carlist siege of Bilbao broken, Marshal Serrano sent General Manuel Gutiérrez de la Concha to lead an attack against the Carlist capital of Estella. Defended by Generals Torcuato Mendiri and Dorregaray, the garrison of Estella took positions in the hills on the approach to the town, near Abárzuza, repelling government forces after fighting which lasted from June 25 to June 27. Half-starved and tired by the long march, government forces were unable to defeat the entrenched Carlists. After suffering over 1,000 casualties, with Gutiérrez among them, the government forces were routed by Mendiri. By September 24, Carlists still held the Basque Provinces and most of Navarre outside of their capitals and kept a 24,000-strong army despite being forced to lift the siege of Bilbao. Government forces made more attempts to take the Carlist capital of Estella despite their earlier failures at Abárzuza. The next attack was a diversionary attack, led by Moriones, southeast of the town of Oteiza on August 11. Government forces were able to defeat Carlists under the command of Mendiri, gaining a small tactical victory with heavy casualties.