It's a pretty usual procedure in software QA, though: someone opens a bug, a software developer fixes it, and a tester decides whether this bug can be closed or has to be re-opened. Your process description gives you a quota of re-opened bugs to be tolerated. If you exceed this quota, the Lead Test Engineer won't sign the release off.
I guess it depends on how much you need to respect your deadline. For instance close to the release date, our QA/Dev/Support managers will go through open issues, and push stuff that can't be closed in a timely matter to the next release. We finish up the more trivial stuff and get the release out. When you're making regular releases, postponing of some features and fixes is often better than missing your deadline.
But it's worth noting, I don't consider a couple days delay to exactly be missing your deadline, especially in small scale software like this, so if they make the release this week, it's no big deal. I just don't know why they feel they need to make excuses.
Every now and then I'll get emails about some of the updates to products I use that get delayed. They never give me excuses. They just say, the release of such and such has been delayed for 3 weeks, the new release date is X/Y/Z. I don't look for message boards to complain about the delay, or demand reasons.
But I know... Gaming is serious business.