Halkbank, which is majority-owned by the Turkish government, has repeatedly refused to accept service in the case and has yet to show up in court, despite the threat of sanctions if it did not comply with two summonses.

King & Spalding, which has represented Halkbank for two years amid a Justice Department probe, moved in November to appear on behalf of Halkbank for the “limited and special purpose” of challenging the court’s jurisdiction and trying to have Berman recused over supposedly prejudicial comments he made about the bank “both in and out of the courtroom.”

According to Hruska, the case raised the “first impression” issue of whether a federal court in Manhattan could exercise personal jurisdiction over Halkbank, a foreign entity with no physical operations in the United States.

Berman denied the request Dec. 5, finding no Second Circuit precedent to support King & Spalding’s contention that special appearances were appropriate in criminal cases. The bank, he said, would still be able to take up its jurisdictional and recusal motions following its arraignment in Manhattan.

On Thursday, Berman said Halkbank was unlikely to succeed on the merits, and a stay would only serve to slow the criminal proceedings against it.

“Issuance of a stay would impede the speedy adjudication of Halkbank’s alleged role as facilitator of a $20 billion conspiracy to evade U.S. sanctions against Iran,” he wrote in a five-page decision.

“The public has a strong interest in the prompt adjudication of the case against Halkbank,” he said.

Deadlines for briefing in the case were extended to accommodate further proceedings in the Second Circuit.