Glad Tidings Church
On June 3, 1970, federal bankruptcy referee Hugh Caldwell approved channel 21's sale to the Glad Tidings Church for $400,000, contingent on FCC approval.[14] Compared to the purchase price, RCA was owed $160,000; Ampex, another equipment manufacturer, $85,000; and Valley National Bank was owed $30,000. Caldwell also ruled that the stockholders in SLTA were not eligible to receive a cent, saying KPAZ's bankruptcy had actually begun on May 31, 1969, before the bankruptcy filing in August. Glad Tidings had bought the station after the existing stations in town refused to give the church time on their air, raising funds through the sale of bonds.
Glad Tidings, even though it did not yet have the license, immediately took an active hand in operating KPAZ, raising potential concerns about undue influence. Less than a month after the approval in bankruptcy court, general manager Lou Silverstein resigned after a year at channel 21, citing indications he had received from bankruptcy trustee Altschul that Glad Tidings "wanted a manager who would work more closely with the church".[15] He was replaced by ex-KPHO general manager Gene Spry. The changes did not take long to follow, as channel 21 began adding religious programming on the weekends. By April 1971, even though the license had still not transferred to Glad Tidings, the station was signing off nightly with an image of Jesus Christ.[16][17] It would not be until June that the FCC approved the transfer of the KPAZ-TV license, at which time Glad Tidings announced it had bought new color videotape equipment.[18]
To continue to fund channel 21's operation, Glad Tidings broadcast periodic pledge drives. In October, the station staged an 11-day telethon titled Outreach '72.[19] That same month, Gene Spry resigned as general manager and was replaced by the Rev. V. O. Brassfield, the church's assistant pastor.[20]
KPAZ also continued to originate new local programming through the bankruptcy process. Children's show Mr. Adam's Animals featured trained chimpanzees. In 1971, station manager Keith Houser created Action Auction. The live Saturday night program, allowed viewers to bid for products such as furniture, Native American jewelry, and automobile supplies. However, the show was canceled after Spry resigned.
Despite FCC approval, the sale to Glad Tidings met with continued opposition from KPAZ's largest creditor: RCA. The company filed at the United States Court of Appeals for the Ninth Circuit to appeal the KPAZ reorganization plan, warning that the original applications filed by Glad Tidings were so inadequate that they forced the church to retain a communications lawyer. On the line was all of RCA's equipment in use at channel 21.[21] The appeals court found in favor of RCA in March 1972, ruling that, under state law, the equipment it had sold still belonged to RCA and could be repossessed at any time. However, bankruptcy referee Caldwell allowed KPAZ to reach a separate deal with RCA as to its equipment, allowing it to continue to operate.[22] The decision reduced the effective purchase price to $155,000. Filings in the case revealed that bankruptcy trustee Altschul had not been allowed to see KPAZ's financial records. At the same time, Maricopa County won a ruling ordering KPAZ to pay it $16,000 in back property taxes for 1970 and 1971.[23]
Glad Tidings continued to invest in KPAZ. On May 5, 1974, ground was broken for a new, 26,000 sqft two-story studio facility at the corner of North 36th Street and East McDowell Road in the Camelback East Village section of Phoenix. The facility, designed by architect James R. Abney,[24] cost $1 million and opened in June 1975.[25] The February 1975 Nielsen ratings showed KPAZ pulled more female viewers aged 25–40 for its broadcasts of The Real McCoys than those watching the CBS Evening News. Additionally, channel 21 aired a package of Phoenix Giants minor league baseball games in the 1975 season.[26]
