SANTIAGO, April 10 (Reuters) - Colbun, one of Chile's biggest electricity generators, said on Thursday it had restructured more than $500 million worth of debt to meet covenants regarding financial expense coverage.

Colbun said in a statement it had modified contracts on some $500 milion worth of bonds, and in return, had agreed to compensate holders by paying a fee of 1.5 percent on average of their worth.

The restructuring was part of Colbun's plan to finance some $1.5 billion worth of investments over the next five years, the company said. (Reporting by Lisa Yulkoswki, Editing by Simon Gardner)