It was a smart move by PJ to make this public, and though it does seem unrealistic, there is a chance that PJ is still playing mindgames with New Line, and by going public like this and stating that the dream is over, he is hoping that out of desperation in the face of overwhelming negative reaction, the studio will come back and offer an agreement on the lawsuit. There's still time I think, but it's a really slim chance.
The movie and music industries seem to regularly employ accounting practices that would get most other CFOs thrown in prison.