Receding tissue on chalice

[the_anti_honda]

Ok so I picked up this coral about a week ago from a LFS who had been slowly killing it for 4 months or more. You can see in the first picture where the recession had left off. After about two days in my aquarium it started receding even more. I gave it an iodine dip and fragged the colony leaving a large chunk and a few smaller pieces. It now appears to have some brown jelly going on.

What do you think should be my next steps as I really don't want to loose the piece.

Thanks in advance.

http://img.photobucket.com/albums/v346/the_anti_honda/ballastpics049.jpg
http://img.photobucket.com/albums/v346/the_anti_honda/ballastpics068.jpg
You can see the green area where algae has taken a hold of and the new white area. This has all happened in the last 24 hours.
http://img.photobucket.com/albums/v346/the_anti_honda/ballastpics069.jpg

[the_anti_honda]

I'm doing another concentrated Lugol's dip right now.

[the_anti_honda]

No other advice?