Complex sentence: When the new king rejects Falstaff, Shallow demands his money back, and even says he'll settle for half, but Falstaff says that's not possible.
Split into simpler sentences: When the new king rejects Falstaff, Shallow demands his money back. When it becomes obvious Falstaff can't pay him back, he says he'll settle for half, but Falstaff says that's not possible.