From your description - I'm getting the impression that the rhizome is destroyed ... ? In which case, there's probably no hope for the plant ...
I've only trashed orchids that had fusarium, so I can't advise much on treatment.
There's this thread:
http://www.orchidboard.com/community...-diseases.html
-there are other threads regarding fusarium
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And from
Orchid Diseases
Quote:
Treatment: Discard infected part of rhizome and pseudobulb if the purple band is evident. Repot only the part of plant showing no purple discoloration. Drench sanitized plants in a thiophanate methyl (like Cleary's 3336 or Banrot) following label instructions. Be diligent in disinfecting growing area and cutting tools. Each time the cutting tool contacts infected tissue, it should be sterilized before making a second cut.
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Hopefully others will chime in!