we have no way inside policy routing to discover that the FR is down.
One solution could be to configure a gre tunnel between B and C over Frame-Relay (using loopback addresses as source).
When the FR goes down, the GRE tunnel traffic is re-routed to router A / ATM.
Routing can be done easily with 2 static routes.
ip route router-c-loopback 255.255.255.255 router-c-fr-ip
ip route router-c-loopback 255.255.255.255 router-a-ethernet