The definition of insolvency includes the phrase "unable to pay it's debts as and when they become due". Whilst the entity may have a negative net worth, provided they are paying the bills on time they may not technically be insolvent. And if the creditors are being paid, why would they seek a Court determination the entity is insolvent?
A Government owned entity may also be protected from insolvency by legislation, guarantees or grants.
And of course, as others observed, it is in PNG, the Land of the Unexpected.