Qintex’s Plan for Resort in Dana Point May Be Dead

A bid by the Australian concern Qintex to develop a major seaside resort in Dana Point appears to have failed after the company said Thursday that it would not meet a payment on land it had optioned to buy.

Qintex said in July that it would build a $1-billion resort on the property, known as the Headlands, and another nearby tract in the small southern Orange County beach town. The two properties are among the last large undeveloped sites on Southern California’s coast.

The decision not to go through with the highly touted land deal comes in the wake of several other financial setbacks for Qintex, including the recent failure to complete the acquisition of the MGM/UA film studios. The $1.5-billion deal fell through when Qintex could not raise the financing.

Those problems also appear to be behind the decision not to acquire the Headlands property. A company source said Qintex’s Australian lenders refused to advance more money for the Dana Point resort project pending a review of the company’s financial status.

Thursday’s statement was just the latest in a series of mishaps that have tarnished Qintex’s once golden image. A U.S. subsidiary, Qintex Entertainment Inc., recently filed for bankruptcy when it failed to meet a $5.9-million payment to MCA Inc.

Qintex said in a terse release that it would “continue to maintain” ownership of the other Dana Point property at Monarch Beach, which it closed on this summer. The company also said it would continue to operate a tennis and golf club there.

Company officials in Los Angeles and in Brisbane, Australia, did not return phone calls seeking comment.