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.