According to the letter of the contract, it sure seems that way.
I went over the contract with the HR team back in the states (I was transferred over to Oz) and they thought these clauses were very strange. Especially considering that Australian workers have much stronger labor rights in practically every other way compared to the US.
I'm Australian but not a lawyer... have heard "unable to pay debts as and when they fall due" as a definition of insolvency, which requires one to declare bankruptcy if directing, say, a limited liability company. The actual act of becoming bankrupt is separate to insolvency, though, so they're probably just trying to cover all bases.
Again, not a lawyer, and only passingly familiar with this stuff, so excuse me if I'm stating the obvious or if it's the same the world over.
I went over the contract with the HR team back in the states (I was transferred over to Oz) and they thought these clauses were very strange. Especially considering that Australian workers have much stronger labor rights in practically every other way compared to the US.