I would cut off all the bad at least 1/2" into the good tissue. I know it's drastic, but it beats loosing the whole coral and you don't want any of that decaying stuff left in your tank.
I had a favia do that once, but I think mine was brown jelly.. Boy did it stink when I cut the edge off. I gave it a soak in Revive, and today you would never know it had been cut.
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