For company management the ultimate nightmare in a downturn is insolvency – when a company finds it has insufficient assets to cover its liabilities, or when debt cannot be paid on time. When that happens, a company’s lenders may call in receivers, liquidators and administrators as part of a voluntary arrangement under which there is an attempt to rescue the company.

Insolvency experts say that in the current downturn, the relative inexperience – and youth – of top company executives is already emerging as a handicap as some companies head in that direction.