A man put together an arsenal of petrol bombs and threatened to "go on a rampage" after he lost his job, a court has heard.
Neighbours were evacuated and armed police were called to upholsterer Paul Dawson's Alloa home, the High Court in Edinburgh was told.
Advocate depute Peter McCormack told how Dawson, 25, was found sitting in his flat on Henderson Avenue, where he lived alone, by his brother.
Peter Dawson, 30, saw his brother sitting on a couch in the living room with a kitchen knife in one hand and a claw hammer in the other. A pick shaft lay nearby.
Dawson told his brother: "I am going to go on a rampage." Peter then asked about a strong smell of petrol in the house and his brother told him he had a bucket full of petrol bombs in the bath.
Peter Dawson, who knew his brother suffered from mental health problems, phoned police. "The way Paul was acting it wasn't him and it looked like he will do something," he said.
Officers arrived to see Paul Dawson pacing from room to room wearing a balaclava and still holding a knife. He was also carrying a hammer in a utility belt and what appeared to be two black handles were sticking out of his pockets.
Paul Dawson was handcuffed as he walked out of the flat and later taken to hospital. The local fire brigade were called in and found a total of 16 bottles partly filled with petrol and fitted with rag wicks in their necks.
Judge Lady Stacey heard that Paul Dawson had first shown signs of schizophrenia two years ago when he began hearing "voices" and claiming that people were spreading rumours about him.
In court, Paul Dawson, now being held in Forth Valley Royal Hospital, admitted behaving in a threatening or abusive manner on January 16. He also pleaded guilty to a breach of the Explosive Substances Act 1883.
Advocate depute Brian Gilfedder, defending, said the loss of his job had been "the catalyst". Lady Stacey made an order keeping Dawson in hospital.
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