I would do a 50% water change as fast as I could. I don't like the fact you've got rot or fungus upfront, and am tempted to say water quality problem, with the addition of the med causing hell by killing your filter bacteria. Any ammonia is bad in a mature tank.
Anyway if it was my tank I'd pull out 50% of the water, and then start readding dechlored tapwater at the rate of something like a bucket every hour or so till it was full again. Give it a couple of days, and repeat. I was also while I was doing this go hard at hoovering the substrate. Melafix is not a bad idea, the only other thing I'd add is dechlor. Don't worry about there being a huge water change. Things are not good anyway, so obly stress it if you have a very large difference in pH. Temperature differences , at the rate you will refill, will be minimal