Straightening out urchin's jacket, speaking with menace (10)
I believe the answer is:
unsnarling
'straightening out' is the definition.
('unsnarl' can be a synonym of 'straighten out')
'urchin's jacket speaking with menace' is the wordplay.
'jacket' says to hollow out the word (remove centre letters) (the letters worn by the word as a 'jacket' are use).
'speaking with menace' becomes 'snarling' (to snarl is to speak in a menacing way).
'urchin' with its centre taken out is 'un'.
'un'+'snarling'='UNSNARLING'
I've seen this clue in The Guardian.
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