In the movie, when Cody is imprisoned in McLeach's lair for not telling the poacher where Marahute the eagle is, some animals also imprisoned, including Red the kangaroo, Krebbs the koala bear, and Frank the lizard pop up and find it amusing that McLeach has kidnapped his own kind. Cody says that he thinks there must be a way out of there, to which Krebbs says that there is a way out they'll all go out as something, including Red who will go out as a wallet. Frank suggests that they get the keys, to which Cody, Red, and the others agree. They use wood and a hook to get the keys, but when they do, McLeach's pet lizard Joanna appears, steals the keys and puts them back. Frank has another suggestion, which is to open the lock with his tail, to which Red replies "Oh Frank. Give it a rest."
The next day when Frank breaks free of his cage Red is the first to notice and wakes Krebbs and Cody and tells them. When Frank notices this, he jumps around excitedly and Red says "Shhh! Joanna will hear!" Frank quietly gets the keys down, but they fall to the floor, but just as Frank is about to get them Joanna appears and chases Frank to which Red screams "Frank! Give us the keys!" When Frank gets on Joanna and hangs onto her like a rodeo cowboy on a bull, Red screams "Yeeee-haaaww! Ride em, Frank!" When Cody gets the keys he frees himself, but before he can free Red and the others he is grabbed by McLeach and taken away.
Since Red and the other animals aren't seen for the rest of the film after this, it is unknown whether if they escaped or not. If they didn't on their own, it's entirely possible Cody remembered him and the others and went back to free them.
Although this is also unknown, Red might have been a lost relation or mate to another kangaroo named Faloo who appeared in the beginning of the film.
Unlike the other animals captured by McLeach, Red is not put in a cage as his neck is chained to a wall. This is most likely because McLeach doesn't have a cage big enough to put Red in, although even if he did, Red would possibly be strong enough to escape (as Kangaroo's have shown to be exceptionally strong animals).