Rootless Phal with spike - how can I save it?

[maiargz]

My 3 yr old phalaenopsis orchid's roots are rotten and the base of the leaves are becoming black. I cut the rotten roots, removed the lower leaves and is currently in a plastic container with very little water trying to get it to grow some roots.

It was just earlier this week that I decided to re-pot this orchid and I discovered that the roots were rotten and had some tiny bugs crawling on it. It was in a glazed pot for 3 years that had no drainage and I was lucky that it bloomed for the first time under my care (or lack thereof) in Jan 2013 (I'm a newbie with plants and just got into gardening as a hobby). It's blooms recently just fell off it's spike and there is one green bud still yet to grow/bloom. I noticed that there is yellowing around the top leaves and blackish pigmentation around the edges of the lower leaves. Anyone know what that is? Also, the new leaf ripped somehow.

I'm hoping that it will grow some roots in the water but is
there a way to encourage the roots to grow? Should I replant it in moss/bark? Should I cut off the spike or leave it alone? Or is it a lost cause?

Any advise/suggestions/comments are greatly appreciated.