Major objective of the paper is to study the impact of financial restructuring on corporate performance. The data was collected from secondary sources. Financial statements of energy sector firms both large and medium scale firms were analyzed and comparison of parameters such as sales, gross profits, net profits, gross assets, taxes paid by them to the government and current ratio, before and after restructuring was undertaken. Paired t-test was used to compare the performance of these firms before restructuring and after restructuring. The empirical result sindicate that financial restructuring has a significant impact on the financial performance of large and medium sized firms in the long run.