Future Retail Ltd (FRL) plunged into deeper trouble on Monday when it failed to pay a $14 million interest payment on dollar-denominated foreign currency bonds listed on the Singapore Stock Exchange.

The beleaguered retailer had earlier failed to repay loans worth Rs 3,500 crore to domestic lenders last month and now faces the prospect of being declared a defaulter if it can’t cough up the money by January 29.

The company has been unable to pay these dues as Amazon has objected to its plans to sell key assets to Reliance Retail for Rs 24,713 crore and the dispute is being fought at the Supreme Court and the Singapore International Arbitration Tribunal (SIAC).

In a late evening letter to the stock exchanges, FRL said the deadline for the payment ended on Monday.

However, it has an additional grace period of 30 days to make this payment. FRL added that it is proposing to make a payment of the interest within this additional period, though it did not disclose how this amount will be paid.

FRL said due to the continued impact of the Covid-19 pandemic, the restricted business operations of the company and the current financial situation, the liquidity position has not improved.

The announcement came on a day the independent directors of FRL refused to consider Amazon’s suggestion thet private equity firm Samara Capital invest Rs 7,000 crore in the company.

Sources said that the independent directors rejected this offer as Amazon did not elaborate on the structure through which the infusion will be made. Moreover, the US retail giant was also silent on FRL’s request of an immediate Rs 3,500 crore long-term loan to repay its lenders.

It is learnt that the independent directors are in the process of writing a letter back to Amazon informing this decision, which will be done in a day or two.

This development comes at a time FRL is set to file a petition in the Supreme Court, urging that the banks be stopped from declaring the account as an NPA. The sources added that the petition will be filed during this week.

The upcoming debt payment has seen letters been exchanged from both the sides over the past week, giving way to questions on whether they will lead to a logical conclusion.

On Saturday, Amazon had confirmed to FRL that Samara Capital remains interested and committed to invest Rs 7,000 crore in the company.