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WOLF-KISHNER REDUCTION
The reaction begins with hydrazone formation (not shown). Hydrazone formation results from the reaction of the ketone with 2HN-NH2 (hydrazine). This reaction is like the formation of an oxime with the C=O except that 2HN-NH2 is used instead of 2HN-OH.
YOU MAY REVIEW THE OXIME FORMATION MECHANISM HERE.
The hydrazone is deprotonated to give a resonance stabilized intermediate.
The anion intermediate is protonated by the water and then deprotonated.
The deprotonated intermediate then looses N2 gas to form a carbanion. The carbanion is protonated to give the reduction product.