Relax ! That is one healthy Phal ! It will surely do well. The first thing you want to do is remove the phal from the pot. Cut out any dry, dead roots. Then soak the plant in a bucket with room temp. water with some fungicide (make sure the crown is not submerged in the water. Leave the plant for about 2 hours. After thorough soaking the roots will become very flexible. Now you want to repot the plant in such way that you coax most of the roots into the pot (take a bigger pot). I would recommend LECA even if you do not want SH. It will do just fine.