Distressed, reinstated after a fashion (10)
I believe the answer is:
straitened
'distressed' is the definition.
(thesaurus)
'reinstated after a fashion' is the wordplay.
'after a fashion' indicates anagramming the letters (letters re-fashioned).
'reinstated' is an anagram of 'STRAITENED'.
(Other definitions for straitened that I've seen before include "suffering financial hardship" , "In financial distress" , "having financial difficulties" , "Financially stretched" .)