Can OutOfMemoryError is automatically recoverable

[RKalaria]

We have a ofbiz server running on java1.5. We got following error :
RMI RenewClean-[192.168.9.44:37163,org.ofbiz.service.rmi.socket.ssl.SSLClientSocketFactory@17f5fbf]" java.lang.OutOfMe
moryError: unable to create new native thread

But the server was not crashed and continuous to response further automatically.

As far as I know, any error thrown by JVM stops further execution. Why we have seen the above behavior.